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Normal speed via LAN but Speed drops on Wifi

I'm using a D-Link 2750U ADSL2 + Router. 
When the Wifi button is turned OFF, I get the promised speed but when i connect using WiFi, the speed drops. I'm on a 2mbps connection. Via LAN i get 2mbps but via WiFi, i get only 0.2mbps. 
My ISP's service person told me that it's the router's fault. But my router is only 2 months old. 
Tried the following: 
1. Firmware upgrade 
2. Factory reset
So, is there a solution for this problem?
Ping is somewhere around 2000ms. 

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