DE2 board VGA Dispaly

Sorry Monish If I understood correct your question, you have a gray scale image in the SRAM.

So, you couldn't generate a color image, but, you can get each pixel of the SRAM and then, assign VGA_R = image_pixel, assign VGA_G = image_pixel, assign VGA_B = image_pixel.

You'll have only eight bits, but if first you shift the data two times left, you'll have a variable of 10 bits to assign to the VGA R,G,B wires.

Your data will look like this: 10'b 1111111100 for a maximun pixel bright, so 256 differents levels, for this 10 bit D/A DE2 vga chip.