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He said the hotel will have a shopping mall and restaurants with specialist chefs.
Wijeratne's Rank Entertainment Investment is expected to have a 45 percent stake in the project, Crown 45 percent and other financial partners the balance.
Sri Lanka has seen a surge of tourist arrivals since the end of a war in 2009.
Sri Lanka's deputy economic development minister Lakshman Abeywardene told parliament this week that the project was luxury hotel with multiple facilities which would be subject to the betting and gaming license.
Abeywardene had said the land will be held by the local partner.
Last month Abeywardene told LBO that the investment application for the project had been submitted and it was being processed.
"We initially estimated this project to be about 350 million US dollars, but now we think it may cost up to 400 million US dollars," Ravi Wijeratne, head of Sri Lanka's Rank Holdings group said.
"It will have 430 rooms and it will attract high spending