COLOMBO, May 25 (AFP) - Fresh talks between India and Sri Lanka to revive a tottering trade agreement have ended in failure once again with no agreement on key issues, officials here said Tuesday. India's Commerce Secretary P. P. Prabhu held talks here with Sri Lankan officials Monday but both sides failed to resurrect the Indo-Sri Lanka Free Trade Agreement that should have gone into effect in March. "There was no breakthrough at the talks although there were high expectations," a Sri Lankan official said, expressing disappointment. Indian diplomats, however, were more upbeat, saying there had been a narrowing of differences between the two sides and that they were close to reaching a compromise. The agreement signed between Indian premier Atal Behari Vajpayee and Sri Lankan President Chandrika Kumaratunga in December was scuttled when New Delhi made a U-turn on promised tariff concessions. India had originally agreed to allow Sri Lanka's main export commodities, tea and rubber, concessionary duty rates in a bid to reduce the huge trade gap that currently favours India by a ratio of 13 to one. Without Sri Lankan tea -- better known by the country's previous name Ceylon -- having easier access to the vast Indian market, the trade agreement would be of little value to the smaller country. Sri Lankan officials said that India last month offered export quotas for Sri Lankan tea subject to a maximum of five million kilograms (11 million pounds) a year not exceeding a cash value of 10 million dollars. In March, India rejected a Sri Lankan call for a 50-million-kilogram tea quota. At Monday's talks Colombo sought a quota equivalent to 15 percent of annual Sri Lankan tea production or about 45 million kilograms. India for its part is demanding a concessionary duty for its cars and motorcycles to enter the Sri Lankan market. Sri Lanka currently imposes a duty of 30 percent on cars but allows buses and trucks in duty free. Tea trade officials here said India had gone back on promises following intense pressure from three tea-growing states in India which feared competition from cheaper Sri Lankan tea.  