Deputy US Trade Representative Josette Sheeran Shiner said the United States will begin the process of examining Sri Lanka's formal request for a trade agreement made during her talks with Prime Minister Ranil Wickremesinghe Tuesday.

"We leave here understanding the interest of Sri Lanka in pursuing this free trade agreement," Shiner told reporters. "We will begin a process of consultations to ensure that this is a win-win agreement for both sides."

She said current bilateral trade was worth about two billion dollars with the trade balance heavily in favour of Sri Lanka.

Shiner, who arrived here Tuesday, held talks with Sri Lankan leaders under the US-Sri Lanka Trade and Investment Framework Agreement (TIFA) signed in July 2002 which set up a forum to discuss bilateral trade and investment issues.

The United States is Sri Lanka's largest single export market, accounting for about 40 per cent of the country's overseas sales. Washington has also strongly supported Norway's efforts to broker peace in Sri Lanka between the government and Tamil Tiger rebels.