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Indian Government to Cover Taxes and Charges for Nagapattinam-Kankesanthurai Ferry Service

The Government of India has committed to covering the costs of applicable taxes and other charges exceeding LKR 25 million per month for a year, facilitating the passenger ferry service between Nagapattinam in India and Kankesanthurai (KKS).

Launched by the Shipping Corporation of India (SCI) in October 2023, the ferry service is set to tentatively resume operations on May 13, 2024. Operated by the private entity IndSri Ferry Services, selected in collaboration with the Government of Sri Lanka (GOSL), this initiative aims to enhance connectivity between the two nations.

To enhance affordability and attractiveness for passengers, the Indian government’s decision to subsidize taxes and charges underscores its commitment to fostering bilateral relations and facilitating convenient travel.

Moreover, in reciprocation, the GOSL has announced a reduction in deviation taxes for passengers departing Sri Lanka via passenger vessels and ships, further promoting maritime travel between the two countries.

This move follows India’s earlier provision of grant assistance totaling USD 63.65 million to the GOSL for the rehabilitation of the KKS Harbour. Initially intended as part of a Line of Credit agreement, this support signifies ongoing cooperation in enhancing infrastructure and connectivity in the region.

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