There is a hotel near the airport that is part of the TAj group - it is O.K (in the words of one of my colleagues). The Hilton in the centre of Columbo is the preferred option - best for business. The Oberoi is a good fallback option but avoid the Taj Palace - it is a dump. There are also heritage options - Mount Lavinia and the Galle Face.
Transport to and from the airport is best organised through the hotel - it won'e be that expensive. USD15 for a decent car if my aging memory recalls correctly.
The lounge option is pretty basic if you are not flying SriLankan. it is basicvally a fenced in area of the departure lounge with a few sofas and the priviledge of a free snack and drinkie. Not worth getting there early for.
You have to have your bags searched before check in, then queue to pay airport tax and immigration. This gets you into the main departure lounge, then you go through security to get to the bus holding pen. No airbridges here! Premium pax on CX get a seperate bus to take them to the plane!