We calculate the lambda-nucleon scattering phase shifts and mixing angles by applying time-ordered perturbation theory to the manifestly Lorentz-invariant formulation of SU(3) baryon chiral perturbation theory. Scattering amplitudes are obtained by solving the corresponding coupled-channel integral equations that have a milder ultraviolet behavior compared to their non-relativistic analogs. This allows us to consider the removed cutoff limit in our leading-order calculations also in the $^3P_0$ and $^3P_1$ partial waves. We find that, in the framework we are using, at least some part of the higher-order contributions to the baryon-baryon potential in these channels needs to be treated nonperturbatively and demonstrate how this can be achieved in a way consistent with quantum field theoretical renormalization for the leading contact interactions. We compare our results with the ones of the non-relativistic approach and lattice QCD phase shifts obtained for non-physical pion masses.