The Government of India has extended its financial assistance for the passenger ferry service operating between Nagapattinam and Kankesanthurai for another year, reinforcing regional maritime connectivity and bilateral ties with Sri Lanka.
According to the High Commission of India in Sri Lanka, the support is provided under the Viability Gap Funding mechanism and amounts to nearly Rs. 300 million annually. This financial backing aims to offset major operational and logistical costs, ensuring the service remains affordable and sustainable for travelers.
Key Highlights
- Continued Financial Support: Marks the third consecutive year of Indian assistance since the ferry service resumed in August 2024.
- Significant Passenger Volume: Around 52,000 passengers have used the service to date, fostering economic and cultural exchanges.
- Annual Allocation: Nearly Rs. 300 million per year provided under the Viability Gap Funding initiative.
- Harbour Infrastructure Upgrade: USD 65 million Indian grant committed for the upcoming rehabilitation of Kankesanthurai Harbour.
Since its relaunch, the passenger ferry has served as a crucial transit link, facilitating social, economic, and cultural interactions between southern India and northern Sri Lanka. Diplomatic officials highlighted that continuing this support reflects India’s steadfast commitment to enhancing regional integration and fostering people-to-people ties.
The continuation of the service aligns with maritime goals reaffirmed during high-level diplomatic exchanges, including the Sri Lankan President’s visit to India in December 2024 and the Indian Prime Minister’s visit to Sri Lanka in April 2025.
Beyond funding current operations, India is set to provide USD 65 million in grant assistance to rehabilitate Kankesanthurai Harbour. Both governments are also examining potential new sea routes and expanded maritime services to further strengthen bilateral transportation networks.