India continues financial assistance for Tamil Nadu- Sri Lanka ferry service

The Indian Government has announced a decision to further extend its financial assistance to the ongoing passenger ferry service between Nagapattinan in the Southern Indian state of Tamil Nadu and Kankesanthurai in the island nation ofSri Lanka. According to the Indian High Commission in Colombo, Sri Lanka, this assistance will be extended for another year and is in line with India's commitment towards enhancing regional connectivity and historic people-to-people ties between the two nations.

The financial support is being extended under the Viability Gap Funding (VGF) mechanism, amounting to over LKR 300 million annually(approx $1mn). It is aimed at ensuring the affordability and operational sustainability of the service by covering key logistical and operational costs, on terms similar to the previous year.

Since its resumption inAugust 2024, the four-hour-long ride via the Palk Straits has facilitated the movement of over 15,000 passengers, reinforcing cultural, economic, and social exchanges between India and the neighbouring island nation. This ferry service stands as a key milestone in revitalising maritime connectivity between India and Sri Lanka. Notably, the ferry ticket cost is also considerably more affordable than flight tickets between Chennai, Tamil Nadu and Jaffna, Sri Lanka.

The continuation of the financial support for the ferry service also aligns with the shared vision for enhanced maritime connectivity, as reaffirmed during the visit of the Sri Lankan President Anura Kumara Dissanayake's India visit inDecember 2024, and Indian Prime Minister Narendra Modi's Sri Lanka visit inApril 2025.

Future plans include the exploration of additional routes and services that will further expand connectivity and economic collaboration, said the Indian High Commission in Colombo.