The Catalan outfit go into the encounter at the Cornella-El Prat stadium on the back of last weekend's 2-0 loss at bottom-side Betis.
The reverse extended Espanyol's winless run to four games in all competitions and dropped the Barcelona-based outfit to 10th in the standings.
"The loss to Betis was a bitter blow for us and we want to bounce back immediately with a win against Granada," Colotto said to www.marca.com.
"Friday's game is like a final for us, in fact, all of our games from now on should be treated as such.
"We don't have the luxury to lose again as there are a many teams behind us in the table and only six points separate us from the drop zone.
"We will give 100 per cent against a Granada side that is also determined to take home three points."
Rivals Granada have warned Espanyol they will be no pushovers.
The Andalusian side are looking to bounce back from last weekend's 2-1 reverse at home to Celta Vigo.
A late Celta goal condemned Granada to their second straight loss and their 12th defeat of the campaign.
"My players were angry and disappointed with the defeat," Granada coach Lucas Alcaraz said. "I hope they can transform those feelings into positive energy to bring home three points from Barcelona."
Granada will have to show a vast improvement if they are to surprise Espanyol with the Nazaries having mustered just one point in their last three league games and won just once in their last four games away from home.
Alcaraz's side is 14th in the standings, two points adrift of Espanyol.
Espanyol coach Javier Aguirre will be without left-back Joan Capdevila, who is sidelined with a rib injury.