Khushboo will be anchoring "Swayambo", to be held Feb 12 and 13 at Holiday Inn in Colombo.
The actress, who has just returned from Sri Lanka - where she is very popular - after overseeing arrangements for the show, said she was glad to be associated with such an event.
"I am looking forward to 'Swayambo,'" the actress, who is as popular in Sri Lanka as in southern India, said in a press note.
VIBA, an event management company that conducts annual pageants in Chennai, is organising the event.
Shoba Ravishankar of VIBA who accompanied Khushboo to Colombo tells: "Khushboo is very famous in Sri Lanka; not only her films but also her TV shows are watched with great interest.
"Her TV serials jackpot and 'Kalki' on Jaya TV, where Khushboo wears designer costumes, especially 'cholis', are a rage in Sri Lanka," Ravishankar said, adding 300 such cholis would be auctioned at "Swayambo".
Shoba, a choreographer and fashion designer herself, said apart from Khushboo, there would be many other stars in the show, depending on their availability.
"The event would comprise fashion shows, dance and music, tête-à-tête with stars and auctioning of clothes."
The theme of the fashion show will be Indian and Indo-Western wear. It will showcase bridal wear, designer wear, fashion garments, jewellery, salwar- cholis, fashion fabrics, makeup and body paints.
There will be eight female and two male models from Chennai. Prominent among them are Simran, Nirupma and Surya. Miss Chennais Bindya of 2003 and Sitara of 2002 will also participate in the show.
The dances would be based on contemporary Indian themes and the dancers and musicians would all be from Tamil Nadu.
Sri Lanka's Shakthi TV and Maharaja TV are sponsoring the event. The first day of the show will be in association with Madhar-Shakti, a women's welfare organisation in Sri Lanka, and the Saiva Mangaiyar Kazhagam, Wellawatte.
Both these organisations are working for woman war victims or those who have become disabled due to landmines.