FINANCIAL CHRONICLE – The Indian government has announced an extension of financial support amounting to Rs. 300 million for the passenger ferry service operating between Nagapattinam and Kankesanthurai for an additional year, as stated by its High Commission in Colombo on Friday.
This latest funding represents the third consecutive year that India has provided financial assistance for the ferry service, which resumed operations in August 2024.
The High Commission’s statement indicated that the support is being offered through the Viability Gap Funding mechanism, totaling nearly LKR 300 million on an annual basis. This assistance is designed to maintain the service’s affordability and operational viability by covering essential logistical and operational costs, consistent with the previous year’s terms.
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Since its restart in August 2024, the ferry service has successfully transported approximately 52,000 passengers, playing a crucial role in fostering cultural, economic, and social interactions between India and Sri Lanka.
According to the High Commission, the service signifies a significant advancement in enhancing maritime connectivity between the two nations.
The ongoing financial backing for the ferry service is in line with the mutual objective of improved maritime connectivity, a commitment reinforced during the Sri Lankan President’s visit to India in December 2024, as well as the Indian Prime Minister’s visit to Sri Lanka in April 2025.
Future initiatives include the rehabilitation of Kankesanthurai Harbour, supported by an overall Indian grant of USD 65 million, along with the exploration of additional routes and services to further enhance maritime connectivity and strengthen economic and interpersonal ties between India and Sri Lanka.
