Colombo was once a city that attracted people with the promise of opportunity and a better future. Families moved here hoping for good jobs, education and a comfortable life. Today, however, many residents feel that living in Colombo has become a daily struggle rather than a dream fulfilled. Prices continue to rise while incomes struggle to keep pace, and ordinary families are feeling the pressure.
Recent data shows how serious the problem has become. Colombo is now ranked as one of the most unaffordable cities in the world for people hoping to buy homes using their local incomes. According to international property surveys, the average price of housing compared to income is extremely high. In simple terms, it would take more than fifty years of an average family’s total income to purchase a home in the city if they spent nothing else. For many young couples and middle income families, owning a home in Colombo has become almost impossible.
Income levels tell another part of the story. The average monthly salary in Colombo is roughly between seventy thousand and ninety thousand rupees, depending on the sector. Yet apartment prices in the city centre remain extremely high, often exceeding one hundred thousand rupees per square foot. Even properties outside central Colombo remain expensive. On top of this, bank loan interest rates for housing remain high, making monthly repayments too heavy for most families.
Housing is only one part of the problem. Everyday living expenses have also increased steadily. Data from the Colombo Consumer Price Index shows that food and non food expenses for households continue to rise. Families are paying more for essentials such as rice, vegetables, milk powder and cooking gas compared to previous years. Rent has also increased, putting further pressure on families who cannot afford to buy homes.
For a single person renting accommodation in Colombo, monthly living expenses including rent can easily exceed two hundred thousand rupees. A family of four may need more than half a million rupees per month to live comfortably in the city. These numbers are far above what most households earn. One reason why has Colombo become so expensive is the steady movement of people into Colombo seeking employment and better services. When more people compete for the same housing and facilities, prices naturally rise. Developers have also focused heavily on luxury apartments and high end projects aimed at wealthy buyers and foreign investors rather than middle income families.
Construction costs have also increased due to higher prices for imported materials and currency depreciation during the economic crisis. Food and service costs have also risen due to supply issues, transport expenses and global price changes. Businesses often struggle with higher operating costs and pass these on to consumers. Unfortunately, wages do not rise as quickly. The human impact of these numbers is visible across the city. Parents worry about school expenses and grocery bills. Young professionals delay marriage or home ownership because they cannot afford rent and savings at the same time. Yet Colombo’s situation is not hopeless if the right steps are taken.
First, affordable housing must become a national priority. Government policies should encourage developers to build homes that ordinary families can afford, not only luxury apartments. State land can be used for middle income housing projects targeting while cooperative housing schemes can help communities own homes collectively at lower cost.
Second, economic opportunities must spread beyond Colombo. If other cities and towns develop strong industries and infrastructure, people will not feel forced to move to Colombo for jobs. This will reduce demand pressure on housing and services in the capital.
Third, wages must better reflect living costs. Policies that support fair wage growth and protect workers are essential. Support programmes for vulnerable families can also ease the burden of rising prices.
Fourth, better monitoring of essential goods prices can help prevent unfair price increases. Supporting local farmers and producers can also stabilise food supplies and reduce dependency on costly imports.
Finally, policymakers must remember that a city’s success should not be measured only by new buildings and rising property prices. A successful city is one where teachers, nurses, drivers, shop workers and young graduates can live with dignity, afford housing, and plan for their future. The goal must be to make Colombo a city where success is shared and where families once again feel hopeful about their future, rather than worried about tomorrow’s expenses.
