What is the treatment for type 2 diabetes?

In response to a question on healthshare.com.au

Weight loss is an important aspect of type 2 diabetes management.

70-80% of people with recently-diagnosed type 2 diabetes and obesity are able to achieve normal blood glucose levels if they lose a significant amount of weight. Unfortunately weight loss is more difficult for people with type 2 diabetes, and is more difficult for those who have been diabetic for several years. Weight loss surgery has now been shown to be more a more effective treatment for diabetes than diet, exercise and medications (for people with recently-diagnosed type 2 diabetes who are also obese).

Some academic articles going into the nitty-gritty details:
An overview:
A randomised controlled trial showing remission of diabetes in 73% of patients treated with gastric banding surgery, compared to 13% treated with medications, diet and exercise:

Weight loss is the closest thing we have to a cure for diabetes; “remission” is a better term, because the effects only last while the weight is kept off.