Cabinet Spokesman Minister Bandula Gunawardena said Sri Lanka's biggest Cricket ground with 40,000 seating capacity will be constructed in Homagama.
Gunawardena said this would be Colombo's second international cricket ground with the capacity to play day and night matches.
A land has already been allocated to the project and the construction is expected to be completed in three years.
Sri Lanka Cricket President Shammi Silva told media that the construction would cost between USD 30-40 million USD.
The project has been initiated while the country is battling with the economic impact of COVID19.