India-Sri Lanka Connectivity through a Ferry Service between Colombo and Tuticorin: An Assessment of Operational Viability, Risks and Prospective Strategies

Abstract

Sri Lanka's geographic positioning has been long recognized as an opportunity that requires strategic exploitation in pursuance of the development objectives of the country. Improving connectivity between India and Sri Lanka is perceived as a main avenue for exploiting this advantage. The re-establishment of the Indo-Lanka ferry operations, which discontinued 25 years ago owing to security concerns, is a step in this direction. This article presents the findings of a research to examine the viability of this ferry operation venture from a Sri Lankan viewpoint. It appraises comparative economics involved in long-distance ferry transportation of passengers between India and Sri Lanka. Possible demand scenarios are appraised based on the preference to shift modes expressed by aviation passengers. Viability is assessed according to selected service supply capacity options, fare levels and associated risks. Policies and strategies to improve the operational viability of the venture for a Sri Lankan investor are also discussed.