ECONOMYNEXT – A ferry service between Nagapattinam and Jaffna will start on May 13 with both tax breaks and subsidies to bring costs down, India’s High Commission in Sri Lanka said.
India will subsidize operating costs and charges at the Nagapattinam port equivalent to 25 million Sri Lanka rupees a month for the next year, while the island nation will also reduce its embarkation tax.
“Strengthening maritime connectivity between India and Sri Lanka was a vital component of the vision document for economic partnership jointly adopted during the visit of the President of Sri Lanka to India in July 2023,” the Indian High Commission said in a statement.
“The resumption of the ferry service is an affirmation of the people-centric policies of the Government of India.”
“In the future, connectivity with Sri Lanka will be further enhanced through electricity grid interconnection, two-way multipurpose pipeline and setting up a land connectivity economic corridor.”
The ferry service will be operated by IndSri Ferry Services, a provate operators, selected by the Shipping Corporation of India, in consultation with the Government of Sri Lanka (GOSL).