I have Linux VPS server 2Gb RAM but when i usee ssh then it is very slow. Sometimes it takes many seconds to see the character typed.
I tried free -m
and it says 1670MB free
I tried top command and there is no command having high cpu usage. only sshd is using 0.3% CPU.
I think your internet line is slow rather than your vps from your remarks.
When you connect with ssh on a slow line (or when you are downloading) you can make the shell lag.
Your VPS provider is either capping upload (at least) or is being DDOS'd or flooded to death. I have found that most "cheap" VPS providers have these issues.
As others have said it's very possible it's your home internet.
I have the same problem due to packet loss, at peak times I get between 10-40% packet loss, this makes characters take as long as 5 seconds to appear on my terminal, very frustrating.
Do a ping test at http://pingtest.net/ to check.