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State land around 'Transworks House' a British colonial era administration building will be given to the developers on a 99-year lease, the Board of Investment said in a statement.
The Transworks House, in Colombo's Fort area itself will be renovated and made into a 'classic hotel'.
The Krrish group has interests in alcohol and real estate.
"This is a very significant investment from India which will result in the revitalizing of the Fort area of Colombo..
," BOI chairman M M C Ferdinando said in a statement.
"This project will contribute to making Colombo an attractive destination for business and help attract trade and investment..
"
The BOI said three towers will sit on a 10-storey podium block with tallest having 80-storeys and the other two having 55 floors. The podium block will have two floors for shopping malls, two floors for offices and 8 floors including two basement ones for parking.
The fourth tower will have a high end residential complex, commercial office spac