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Prashanthi Cooray tracks the trends shaping the future of Sri Lanka’s property market
After several years of economic uncertainty, Sri Lanka’s real estate sector is showing encouraging signs. Confidence is gradually returning, buyers are becoming more active, and developers are seeing renewed interest in residential and mixed use projects.
While challenges remain, the market is once again generating optimism among local buyers, Sri Lankans living overseas and international investors. Much of this renewed momentum can be seen in Colombo and its surrounding urban hubs, where demand for quality housing continues to grow.
This recovery is being driven not only by improving sentiment but also a growing belief in the value of ideally located real estate, with property emerging as a viable avenue for wealth creation.
The numbers tell a compelling story…
According to the Central Bank of Sri Lanka’s latest real estate market analysis, condominium sales activity accelerated sharply during 2025. The condominium property sales volume index rose by 128.4 percent year-on-year in the third quarter of last year, following a 44.2 percent spike in the previous three months.
