The land belongs to Ceynor Foundation, a state-run boat builder.
The firm has offices in Colombo's D R Wijewardene Mawatha.
The area had been zoned for leisure and entertainment development by Sri Lanka's Urban Development Authority.
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Ceynor chairman Sarath Kumar de Silva said a 15-floor hotel project, which is the maximum allowed under UDA rules was estimated to cost around 30 million US dollars to build.
"But the UDA may relax this rule," he said. If the rule is relaxed a hotel of up to 40 floors could be built, he said.
Senaratne said he hoped to have talks with Aitken Spence on the project which could be in the 'seven star' class.
Aitken Spence is one of Sri Lanka's largest leisure groups, but it has no city hotel.
It also operates resorts in the Maldives.
A media report said yesterday that the cabinet of ministers had approved a proposal by the economic development ministry to give land from a military sports ground in Colombo to Hong Kong-based Shangri-La group for a