LOLC was in talks with international hotel chain operators to manage the property Chairman Kapila Jayawardena told shareholders in the annual report.
"The Group has short listed companies who have also given their input on the architectural designs, which has enabled the management to develop drawings which will be aligned to an internationally recognized 5 star property," he said.
"With the completion of the property development, final agreements will be signed with the selected hotel management company."
LOLC merged two hotel firms, Riverina Hotels Plc and Riverina Resorts (Pvt) Ltd, and demolished existing hotels for the proposed project.
Jayewardene said the old hotels were removed to make maximize land use and to "develop a property with latest style and design with resource efficiencies of sophisticated international hotels."
"Architectural drawings have been finalized and the necessary approvals are currently being sorted out in order to commence the development of the new property," he said.
"The newly developed property will be the largest resort hotel in the Country which will boast of 475 keys, after full completion."
The company had spent 92 million rupees giving a voluntary retirement package to existing employees.