Developing a Property Classification Framework for Rating Valuation Purposes in Sri Lanka

Abstract

Property taxation forms the financial basis of local government in Sri Lanka, but its efficiency and fairness are compromised through the absence of a systematic system of property classification. Without properly established standards, rating valuations are exposed to excessive degrees of personal judgment, resulting in inconsistencies and limiting public confidence. This study aims to establish a property classification framework for rating valuation, defining measurable criteria across residential, commercial, industrial, agricultural, special, and vacant land categories. Using a qualitative approach supported by expert insights and content analysis of valuation practices, the research translates subjective judgments into transparent and comparable indicators. The findings demonstrate that structured classification enhances uniformity, accountability, and readiness for digital integration across local authorities. The framework provides a practical foundation for adoption within rating cards, ensuring equitable assessment and contributing to transparent, data-driven local revenue governance in Sri Lanka.