Land Demand Set to Surge Along Ruwanpura Expressway Corridor, Reports LankaPropertyWeb

The Sri Lankan property market could enter its next major growth phase following the government’s approval to commence the procurement process for the first phase of the Ruwanpura Expressway Project. Phase 1 of the project, which will connect Kahathuduwa to Ingiriya and will include the construction of a new bridge interchange at Kahathuduwa, is expected to significantly improve connectivity between Colombo and Sabaragamuwa Province. While the expressway is primarily a transport infrastructure project, LankaPropertyWeb’s research indicates that it also has the potential to reshape property demand and create new investment opportunities across the proposed corridor.

According to data from the LankaPropertyWeb (LPW) Land Price Index (LPI), Ingiriya and Padukka have already been among Sri Lanka’s strongest-performing land markets over the past several years, even before the construction of the Ruwanpura Expressway. Between 2017 and 2025, the average asking price of land in Ingiriya increased from Rs. 49,363 per perch to Rs. 344,850 per perch, representing an impressive sevenfold increase. During the same period, Padukka recorded a 151.3% increase, while the Colombo District average grew by 66.9% and the Kalutara District average increased by 123%. These figures indicate that Ingiriya and Padukka have consistently outperformed the broader market, demonstrating strong long-term demand. 

LPW analysis indicates that approval of the project could further strengthen the upward trend for areas adjoining the Ruwanpura Expressway Route, such as Polgasowita, Gonapola, Horana, and beyond.  Improved connectivity has historically been one of the most influential drivers of land value appreciation in Sri Lanka. Easier access to Colombo, reduced travel times, improved logistics, and better connectivity to employment centres, schools, healthcare facilities, and commercial hubs often encourage residential development while attracting developers and long-term investors.

A key reason behind this prediction is the transformation of areas surrounding expressway interchanges, such as Kahathuduwa. Following the development of the Southern Expressway interchange, Kahathuduwa experienced significant growth in residential and commercial activity, resulting in stronger buyer demand and increasing land values. Today, it has become one of the most sought-after suburban locations due to its strategic connectivity. With the proposed Ruwanpura Expressway interchange being built at Kahathuduwa, LPW expects the area’s importance as a transport and investment hub to strengthen even further.

Rather than viewing Kahathuduwa as the primary growth story, LPW anticipates that it will provide a proven example of how major infrastructure projects can transform nearby property markets. Based on the data, LPW forecasts that land for sale in Ingiriya will become the next major beneficiary of improved accessibility. As the endpoint of the first phase of the expressway, Ingiriya is expected to attract increasing demand from homebuyers seeking more affordable alternatives to Colombo, developers looking for emerging residential markets, and investors seeking long-term capital appreciation.

Beyond Ingiriya, LPW also expects increased market activity across Kuruwita, Ratnapura, Pelmadulla, and areas further along the route such as Balangoda, Belihuloya, Bandarawela, Ella and Badulla as future phases of the expressway improve regional connectivity. Historical data also highlights the attractiveness of land as a long-term investment. While the average 12-month fixed deposit rate across six leading Sri Lankan commercial banks currently stands at approximately 9.04% per annum, the long-term appreciation of 598.59% in Ingiriya and 151.24% in Padukka between 2017 and 2025, compared with the 9.04% FD rate, demonstrates the wealth creation potential of strategic land investments in high-growth corridors. Although fixed deposits provide stable and predictable returns, land in emerging locations has the potential to deliver significant capital appreciation over extended investment horizons.

Commenting on the market outlook, Chamara Thewarapperuma, Head of Research & Analytics at LankaPropertyWeb, said the company’s prediction is based on established market trends rather than short-term speculation.

“Our Land Price Index has consistently identified Ingiriya and Padukka among Sri Lanka’s strongest-performing land markets over the past several years. The approval of the Ruwanpura Expressway is expected to further strengthen these locations by improving accessibility and increasing investor confidence. Kahathuduwa has already demonstrated how expressway connectivity can transform a local property market, and Ingiriya is well positioned to follow a similar growth trajectory. As infrastructure development progresses, we also expect increasing buyer interest to extend towards Kuruwita, Ratnapura, Pelmadulla, and surrounding areas,” said Thewarapperuma.

Tharindu Jayarathne, Chief Operating Officer of LankaPropertyWeb, noted that the project represents more than a transport improvement—it has the potential to reshape how buyers and investors view the region.

“Accessibility is one of the most important factors influencing real estate demand. When travel becomes faster and more convenient, locations that were once considered distant become increasingly attractive for residential, commercial, and mixed-use developments. Based on the impact of previous expressway projects in Sri Lanka, we believe the Ruwanpura Expressway could unlock significant opportunities for property owners, developers, and investors along this corridor,” said Jayarathne.

The company emphasises that this outlook is based on historical market data, previous infrastructure-led development patterns, and the expected impact of improved regional connectivity. While actual market performance will depend on the successful implementation of the project and broader economic conditions, LPW trusts the Ruwanpura Expressway represents one of the most significant opportunities for long-term real estate growth outside Colombo.

LPW’s latest Land Price Index can be viewed at https://www.lankapropertyweb.com/land-prices/