India-Sri Lanka Ferry Service

In a move that underscores its commitment to regional connectivity and people-to-people ties, the Government of India has announced the extension of financial assistance for another year to support the India-Sri Lanka passenger ferry service operating between Nagapattinam (Tamil Nadu) and Kankesanthurai (Northern Sri Lanka). This continued support reflects India’s strategic focus on deepening bilateral cooperation with Sri Lanka through maritime and cultural linkages.

The financial assistance will be provided under the Viability Gap Funding (VGF) mechanism—an instrument used by governments to support infrastructure projects that are economically justified but may not be financially viable without external support. In this context, the VGF ensures that the ferry service remains affordable and operational by covering essential logistical and operational costs. For this route, over 300 million Sri Lankan Rupees have been earmarked annually under the scheme.

This funding mechanism plays a crucial role in keeping passenger fares accessible, thereby promoting consistent usage of the service. Since its relaunch in August 2024, the ferry has seen impressive uptake, with over 15,000 passengers using the service. It has become a key driver of cultural exchange, economic interaction, and social connectivity, marking a significant milestone in the revitalization of maritime links between the two countries.

The decision to extend support comes in the wake of high-level bilateral engagements, highlighting the growing warmth in India-Sri Lanka relations. Notably, the President of Sri Lanka visited India in December 2024, followed by the Indian Prime Minister’s visit to Sri Lanka in April 2025. These visits have catalyzed discussions on deeper maritime cooperation, with both sides now exploring additional ferry routes and expanding the scope of maritime collaboration in the near future.

As both nations look to the future, the ferry service stands as a symbol of shared heritage, regional integration, and mutual progress. India’s continued support not only bolsters the existing service but also paves the way for broader initiatives aimed at enhancing South Asian maritime connectivity.