The Indian High Commission said that the government of India had extended a grant assistance of USD 63.65 million to the government of Sri Lanka for rehabilitation of the KKS Harbour, which was earlier envisaged to be undertaken under a Line of Credit.
This is in line with India’s commitment to supporting Sri Lanka’s economic recovery and its journey towards progress and prosperity, in close partnership with India. The HC spokesperson said so in a press release that dealt with the resumption of the passenger ferry service between Nagapattinam in India and Kankesanthurai (KKS).
The ferry service that has been launched in October 2023, was relaunched on August 16, 2024.
The spokesperson said: “The ferry ‘Sivagangai’ run by a private operator, IndSri Ferry Services, completed its maiden journey between Nagapattinam and KKS in approximately 4 hours with around 50 passengers on board. The passengers were welcomed at the KKS port by the Consul General of India in Jaffna.
This resumption of ferry service is a testament to the broader effort to enhance maritime connectivity between India and Sri Lanka. In order to make the service more affordable for passengers, Government of India has decided to provide financial assistance of over LKR 25 million per month, for a period of one year, to cover relevant charges and operating costs at Nagapattinam port. Similarly, Government of Sri Lanka has reduced the deviation tax currently charged to passengers leaving Sri Lanka by passenger vessels and ships.
The resumption of this service underscores the commitment of both countries to strengthening bilateral relations through improved connectivity, as highlighted in the vision document for economic partnership jointly adopted during the visit of the President of Sri Lanka to India in July 2023. Future plans include the exploration of additional routes and services that will further expand connectivity and economic collaboration.”