The Cabinet on Wednesday has given its approval for Sports Minister Mahindananda Aluthgamage to proceed with the initial measures to be taken on the bidding process.
Sri Lanka has submitted an Expression of Interest by the March 31, 2010 deadline to host the games in the tsunami devastated southern city which is undergoing massive development.
The government recently opened the new Hambanthota harbor and is in the process of building a second international airport.
An international caliber sports complex is currently under construction and the newly built international cricket stadium is a venue for the upcoming Cricket World Cup 2011.
The government said it has appointed an organizing committee co-chaired by the Minister of Sports and Governor of Central Bank Ajith Nivard Cabraal to prepare the bid for Commonwealth Games.
The only other bidder to host the event is the Gold Coast of Queensland, Australia.
The Commonwealth Games Federation will announce the winning bid in Basseterre, St Kitts on November 11, 2011.