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The newspaper said Sri Lanka's military chief Jagath Jayasuriya had said there was a need for "a separate company within the management of the Army" to bid for state projects and implement them "at a low cost."
The military was also building smaller hotels which will cater to military personnel and also be available for the public.
"We are now engaged in five hotel projects in Nilaweli, Arugam Bay and Yala," Sri Lanka's Daily Mirror newspaper quoted military spokesman Nihal Happuarachchi as saying.
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"These are mini hotel projects with 20 to 30 rooms."
The military was building infrastructure in former war zones in the north and the east. Army engineers backed by soldiers were building roads, bridges, playgrounds and parks.