India extends financial support for Nagapattinam-Kankesanthurai ferry service

The Government of India has extended its financial assistance for the passenger ferry service between Nagapattinam and Kankesanthurai for another year, marking the third consecutive year of support since the service resumed in August 2024.

The assistance, worth nearly Rs. 300 million annually, is being provided through India’s Viability Gap Funding (VGF) mechanism.

The funding is intended to help keep passenger fares affordable and support the service’s operational sustainability by covering key logistical and operating expenses.

Since the ferry service resumed in August 2024, around 52,000 passengers have travelled between India and Sri Lanka, contributing to greater cultural, economic and social exchanges between the two countries.

The extension of the financial assistance reflects India’s continued focus on strengthening maritime connectivity and people-to-people ties with Sri Lanka.

Both countries have also reaffirmed their commitment to improving maritime links, including during President Anura Kumara Dissanayake’s visit to India in December 2024 and Indian Prime Minister Narendra Modi’s visit to Sri Lanka in April 2025.

The Nagapattinam-Kankesanthurai ferry service is regarded as an important step towards restoring maritime links between the two countries, with further expansion of connectivity also under consideration.

Future plans include the rehabilitation of Kankesanthurai Harbour through an overall Indian grant assistance package worth US$65 million.

India and Sri Lanka are also exploring additional ferry routes and services to expand maritime connectivity and strengthen economic and people-to-people links.

The latest extension of financial support is expected to help maintain the ferry service while both countries continue efforts to develop broader maritime connectivity between India and Sri Lanka.