Finance minister Mangala Samaraweera submitted the related paper at the request of primary industries minister Daya Gamage.
A ban was imposed after imported areca nut and pepper were sent to India under the FTA describing them as Sri Lankan products.
This has met with opposition from India and also the prices of the local products declined.
Wayamba Traders, owned by one Sadikin, is the leading re-exporter.
A handful others are given licenses to re-export areca nut and pepper.
However, Sadikin runs a monopoly by obtaining the licenses under the names of others.
He was aided by certain powerful ministers.