The D R Wijewardene property project however dates back from an earlier process a senior official said.
Rank Holdings chief Ravi Wijeratne said a 5-star hotel and 171 apartments would be part of the mixed development.
The project would come up on a 2.5 acre property on D R Wijewardene Mawatha in Colombo, leased from the state, he said.
Wijeratne said construction is expected to begin in November.
The area has been earmarked for leisure and entertainment development by Sri Lanka's urban development agency.
Debt financing would come from foreign banks and Rank Holdings and the Indian partner would put in equity, he said without elaborating.
On August 10, Sri Lanka's Urban Development Authority said it had sold a two acre block of lakefront land in Colombo to Indocean Developers, a firm backed by Kolkota's Emami and Rameswara groups.
The land is sold in 99-year leases.