The hotel will be built on land leased for 99 years from Sri Lanka Urban Development Authority.
The project involves a SilverNeedle's NEXT branded hotel targeting business travellers, a 4-story mall and a 30-storey condominium tower.
"South Asia is a strong priority market for SilverNeedle Hospitality and we look forward to entering the market with ABANS Group as a partner," managing director SilverNeedle Hospitality, Iqbal Jumabhoy said in a statement.
"This mixed use project plays to SilverNeedle Hospitality’s significant capabilities in the property development space."