The initiative is part of IIFA Weekend being held in Colombo from June 3 to 5.
Addressing a press conference here, Salman, who runs the Being Human charity foundation, said he supported IIFA's initiative to build bridges with the Lankan people who have suffered hardships due to the decades- old war that ended last year with the military defeat of the LTTE.
"I am happy to be the Ambassador for change and believe that it is crucial to make a difference and contribute to this worthy cause, " the 44-year-old actor said.
A charity cricket match is being organised between Indian celebrities and Sri Lankan cricketers on June 4 as part of the 'cricket for change project' under which former child soldiers will be rehabilitated.
The kids, who bore the scars of the ethnic conflict, will be educated and trained in cricket and get to participate as volunteers at the IIFA Weekend.
As a symbol of solidarity with the people of the island nation, IIFA, in partnership with Habitat for Humanity, will adopt and rebuild a village housing refugees with the proceeds of the cricket match being donated for this cause.
Habitat for Humanity is an international NGO with which former US President Jimmy Carter is associated.
The global organisation, devoted to building simple and affordable housing, is already doing considerable work in Sri Lanka, Sabbas Joseph, Director of Wizcraft, which organises the IIFA Weekend, said.
The housing project would involve building 100 houses in the Jaffna region, he said.
Actors Lara Dutta, Riteish Deshmukh and Boman Irani will once again host the IIFA Awards function on June 5.
Sri Lanka Deputy Minister of Economic Development Lakshman Yapa Abeywardena expressed confidence that IIFA, that showcases Bollywood to the world, will play a vital role in strengthening co-operation between India and his country.
"Sri Lanka, called the 'Pearl of the Indian Ocean', has great potential for investments in tourism, agriculture and film co-productions that will contribute towards the rapid development drive initiated by the government, " he said, adding a Film City is being developed near Colombo.
Indian icons Rabindranath Tagore, Pandit Ravi Shankar and filmmaker Satyajit Ray were part of Lanka's culture and heritage as much as they were in their home country, he said.
Dileep Mudadeniya, Managing Director of Sri Lanka Tourism, said the number of Indian tourists visiting the island nation is about 100, 000 a year.
"We expect the number to double in 2012. So far, we have invested USD 4 million to create infrastructure to hold international events."
When Sallu heard SRK and walked off...
At the event someone asked Sallu about sharing the IIFA stage with Shah Rukh Khan (who is also slated to be present), he ignored the question.
But after two to three other questions, when Salman was again asked, he got up and left mid-way.