The vessel will have a crew of 69. Colombo Dockyard earlier built two passenger vessels for India, MV Arabian Sea and MV Lakshadweep Sea.
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The vessel, with a capacity to carry 400 passengers and 250 tonnes of cargo, would be bigger than a pair built for India a year ago and be the largest yet to be built by the yard, a statement said.
The two vessels are for the Administration of Union Territory of Lakshadweep, India, and will cater to increased traffic from Cochin port to the UTL islands, as well as in the inter island routes.
"The addition of these vessels will ease the movement of passengers especially during peak season," it said.