India extends financial support for Nagapattinam-Kankesanthurai ferry service

The Government of India has announced a one-year extension of financial assistance to sustain the Nagapattinam-Kankesanthurai passenger ferry service, and stated that it is a "reinforcement of its commitment to regional connectivity and strengthening ties between India and Sri Lanka."

In a statement, the High Commission noted that the aid, amounting to over LKR 300 million annually (approximately LKR 25 million per month), will be provided under the Viability Gap Funding (VGF) mechanism. This funding is designed to ensure the ferry’s affordability and operational sustainability by covering key logistical and operational expenses, continuing on the same terms as the previous year.

Since its revival in August 2024, the ferry service has transported more than 15,000 passengers, playing a significant role in boosting cultural, economic, and social exchange between the two nations. The route is widely seen as a landmark initiative in restoring maritime connectivity in the region.

The decision to extend support aligns with the shared maritime vision outlined during high-level bilateral visits, 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.

Looking ahead, both countries are exploring the possibility of expanding the service to include additional routes, further enhancing connectivity and economic cooperation.