Delta Corp said in a stock exchange filing that it had acquired 11 acres of land to build a 4 or 5 star entertainment hotel resort complex.
The company said Sri Lanka is in the midst of a tourism boom after the end of a three decade war.
"Delta Corp hopes to have an early mover advantage and be part of this growth," the firm said.
The firm said it was the largest gaming company in India and the only listed one. It operated two offshore casinos in vessels off Goa and was in the process of setting up a new one.
Earlier Sri Lankan officials said that Delta Corp was also looking to lease an island in Kalpitiya.