India Extends Financial Support for Ferry Service to Strengthen Sri Lanka Ties

Colombo: In a significant move to reinforce regional cooperation and enhance people-to-people connectivity, India has extended its financial assistance for the passenger ferry service between Nagapattinam (Tamil Nadu, India) and Kankesanthurai (Sri Lanka) for one more year. The ferry service, which has already facilitated the travel of over 15,000 passengers since its relaunch in August 2024, stands as a testament to India’s enduring commitment to regional connectivity and cultural exchange.

The Indian High Commission in Colombo, in an official statement, confirmed that the financial support—amounting to LKR 300 million (approximately LKR 25 million per month)—is being provided under the Viability Gap Funding (VGF) mechanism. This support is aimed at covering essential operational and logistical costs to ensure the ferry’s affordability and long-term sustainability.

According to the statement, the assistance reflects India’s continued support for initiatives that bring citizens of both nations closer and promote mutual understanding. The ferry service has become a vital maritime link that boosts tourism, trade, and personal ties between the two neighboring countries.

Describing the ferry as a “milestone in reviving maritime connectivity,” the High Commission emphasized that India’s decision aligns with the shared vision of increased regional engagement, which was reinforced during Sri Lankan President’s visit to India in December 2024 and Prime Minister Narendra Modi’s return visit to Sri Lanka in April 2025.

The High Commission further revealed that plans are underway to explore additional routes and services, further enhancing maritime connectivity and economic cooperation in the Indian Ocean region.

This extension is particularly significant amid efforts by both countries to deepen ties across sectors including infrastructure, tourism, and regional development. The service has enabled smoother cross-border travel for families, pilgrims, tourists, and businesspersons, making it not just a transport initiative but a bridge of goodwill and collaboration.

With the Indian government’s financial backing, the service is poised to continue playing a pivotal role in strengthening bilateral relations, especially in the Northern Province of Sri Lanka and the southern coast of India.