Supreme group has interests in commodity trading including urea, coal, bitumen, PVC and iron ore, the BOI said.
The launch on November 22 via 'Long March' vehicle from the Xi Chang Launch Centre will be the first of three.
The other two are expected on June 2013 and December 2015, the agency said.
The firm will build a 20 million US dollar space station in Pallekele industrial zone in Kandy. There will also be 'space academy' at the place.
Another BOI media statement quoted M A Manivannan, chairman SupremeSAT as saying that the project involves investing 320 million US dollars over the next 3 to 5 years.
The Satellite is built by France's Thales, he said.The project is connected to Rohitha Rajapaksa, a son of Sri Lanka's President Mahinda Rajapaksa.
"I am very proud to say that Rohitha is one of the finest space engineers the industry has ever created," Manivannan was quoted as saying.
"Hence we were fortunate to have him and the country was fortunate that he agreed to play a lead role in the creation of Sri Lanka’s first satellite and the newly emerged space industry it has created."
The first satellite will offer direct to home satellite services. The next two satellites will expand into broadcasting, events and uplinking, backbone connectivity and broadband internet services will be offered.
Supreme SAT has begun discussions with Afghanistan, the BOI said.