Colombo Property Market Monitor 1Q22

Track key real estate market trends in Colombo with our latest Property Market Monitor

June 06, 2022
  • Pramuk Amarakoon

Sri Lanka clocked a GDP growth of 3.7% in 2021, recovering from the contraction of 3.6% in 2020. Despite strong exports and rebounded remittances during 1Q22, the economic performance remained subdued, mainly due to exacerbated difficulties in the external sector, which disrupted the daily market operations and economic activities. However, the economy is anticipated to gain headway with the tightened approaches in monetary policy enacted during 1Q22.

During 1Q22, the overall Colombo office market rentals surged notably, driven substantially by the significant depreciation of LKR against the USD. Consequently, Grade A buildings with moderate rentals experienced heightened occupier activity. Luxury and premium residential market demand buoyed amid the challenging environment. During 1Q22, moderate leasing activity provided relief to the prolonged muted retail market due to the festive season. The industrial market continued to remain resilient with strong demand and notable developments.

Key highlights
  • Dwindled foreign reserves challenged economic activities

  • Office market rentals notably surged

  • Residential market demand remained persistent

  • Fashion and apparel industry boosted moderate retail leasing activity

  • Industrial and warehousing market witnessed significant development

Fill out this form to download report

There was an error submitting the form. Please try again. 


Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.

Generally, the personal information we collect from you are for the purposes of downloading materials you have requested.

We endeavour to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our privacy statement.