"We have not only taken Cinnamon Lakeside but also Sri Lanka to a new level because this is an international award by a very serious magazine," Denis Gruhier, the hotel's general manager said.
"Up market guests will know that Sri Lanka is a destination that is developing standards through us."
Gruhier says the award by the Business Destinations magazine shows how people look at Sri Lanka and the hospitality industry "through the eyes of a corporate traveler."
The hotel said the award took into account is standards and also environmental friendly practices.
The hotel said it began a trolley-less housekeeping service and introduced a priority check-in service under three minutes for high-end guests, mostly business travelers.Sri Lanka is going through a tourism boom after the end of a 30-year civil war in 2009, new hotels are being built, and older hotels are being modernized.
Cinnamon Lakeside, which is by Colombo's Beira Lake, has refurbished its 346 rooms and also launched floating restaurant.
The travel industry is promoting Sri Lanka as a business tourism destination, for meetings, incentive travel and exhibitions. In 2011 arrivals rose 30 percent to 855,000. Up to May 2012 arrivals were up 18 percent.
Bookings in the hotel's executive floor mostly occupied by business travelers have grown 30 percent during January to June this year compared to a year earlier, the hotel said.
"We have definitely seen a pick up in the corporate market," the hotel's director of sales and marketing Ajantha Perera said.
"There is a significant increase in business travelers from India, China and the UK."
Cinnamon Lakeside says it has an occupancy rate of around 60 percent leading to a year round average of 70 percent.