Consider the following statements: 1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 2. "Textile and textile articles" constitute an important item of trade between India and Bangladesh. 3. In the last five years, Nepal has been the largest trading partner of India in South Asia. Which of the statements given above is/are correct?

1. Indo-Sri Lanka trade has consistently increased in the last decade — Incorrect. Bilateral trade has shown fluctuations, with dips in some years; it has not risen consistently year after year.
2. 'Textile and textile articles' are an important item of trade between India and Bangladesh — Correct. Textiles and related articles are a major component of India-Bangladesh trade.
3. Nepal has been India’s largest trading partner in South Asia in the last five years — Incorrect. Bangladesh, not Nepal, has generally been India’s largest trading partner in South Asia in recent years.

Therefore, only statement 2 is correct.