Odel PLC has resumed construction on its long-delayed mixed-use mall in Colombo 7 and revised the project down to a single phase, telling the Colombo Stock Exchange that Zone 1 should be completed within the next 18 to 24 months.

The Softlogic Holdings subsidiary said the development had originally comprised two zones, but the plan has been reworked to prioritise Zone 1. “Construction work of Zone 1 has recommenced and is progressing as at date,” the company said.

Zone 2, a 100-perch block of land, will be retained for future development. Odel gave no timeline or further detail for that phase.

The company said the disclosure was made to clarify the project’s status and to counter “speculative and/or inaccurate representations” circulating about the development.

Odel did not disclose how much construction has been completed, a revised investment value, or an expected opening date.

Interim accounts to 31 March 2026 give some sense of the scale of commitments still outstanding, Daily FT reported. Odel Properties One Ltd., a wholly owned subsidiary, had contracted Access Engineering PLC for Rs. 570 million for diaphragm wall and piling work on the proposed department store, of which Rs. 450 million had been completed by the reporting date. A separate agreement with China Construction Third Engineering Bureau Co. Ltd., worth Rs. 9.81 billion for the commercial development at Ward Place, had Rs. 7.5 billion of work completed. The company also disclosed an estimated Rs. 4.5 billion in non-contracted capital commitments.

Odel’s 2024/25 annual report, reflecting the position as at 31 March 2025, put capital work in progress on the mall at Rs. 17.79 billion, with a further Rs. 6.3 billion needed to finish it.

The company said it had revised the long-term financing strategy after cutting the construction scope. Removing the apartment component and converting it into rentable office space significantly reduced the funding requirement. Under the revised plan, the project is to be financed through advances from office space sales, supplemented by external equity.

Odel added that it had sought to restructure its existing syndicated loan and accrued interest. The banking consortium, led by Hatton National Bank PLC, responded positively and is evaluating options — a restructuring the company expects will ease near-term cash flow pressure.