Dual Exchange Rate Regime By the mid 1960s, however, the country faced a balance of payments crisis,

triggered by low export prices and a high volume of imports. The situation was aggravated by the
devaluation of the British pound, forcing Sri Lanka to devalue the rupee by 20 per cent on 22 November
1967, in order to maintain export competitiveness. In an attempt to ease the pressure on the countrys
balance of payments, a Foreign Exchange Entitlement Certificate system was introduced in 1968.

This involved a system of dual exchange rates with one official rate applicable to essential imports and
non-traditional exports, and another higher official rate applicable to all other exports and imports. The
objective of the scheme was export diversification and import compression by allowing the market
mechanism to regulate the flow of non-essential imports. It was designed to bring the rupee cost of a
wide range of such imports closer to the realistic value of foreign exchange. However, this amounted to
subsidizing the cost of providing the foreign currency at lower rates to the non-traditional exporters,
which eventually had to be borne by the Government. The exchange control restrictions imposed
towards the latter part of 1950s in view of the looming balance of payments difficulties, were tightened
further with the onset of the oil crisis in 1973. Due to thebalance of payments crisis it sparked, Sri Lanka
adopted highly restrictive controls on current and capital account transactions, which prevailed until
1977.

Lever Brothers (Ceylon) Ltd was established in 1938, prior to which Unilever brands were imported into the
country, mostly through United Exporters Limited. The manufacture of Soaps and Glycerine began in the Lever
Brothers Colombo factory in May 1940 and production of Edible Products followed in March 1941. More and
more lines which had previously been imported were made locally, such as Lux toilet soap, Rinso, Blue Band
margarine, SR, Pepsodent, and a range of toilet preparations.

In around 1956 Non Soapy Detergents were introduced, but Ceylon was still a laundry soap market and
Sunlight Soap was very popular; it had been introduced into the country in 1896, and by 1962 seventy million
cakes were sold every year. Also around in 1962 were Lux and Rexona toilet soaps, Pears and Vinolia talcum
powders, SR and Pepsodent toothpaste, and Rinso.

Initially, goods manufactured at the factory in Colombo were sold and distributed to members of the public via
agents but in 1957, Lever Brothers (Ceylon) set up its own selling operation. During the years1957-72, the
company grew, but austerity followed this period. Product formulations had be modified, and Lux was initially
made with coconut oil as this oil was subsidised. Import restrictions meant that perfumes could not be brought
in the country, so Lux was temporarily taken off the market and a product called Pears Rose was introduced
instead. As a result of the inability to print toothpaste tubes, a printed paper wrapper was developed instead
for SR toothpaste. With margarine, tin could no longer be used so cardboard boxes with plastic linings were
used instead. By the 1980s, however, the situation had improved and advertising began again; by 1982, for
example, Astra margarine was advertised on television.

The Lever Brothers (Ceylon) factory used in Colombo prior to the 1960s was formerly a copra store owned by
Jurgens built in 1918. A new building was erected in the 1960s, which cost over five million rupees (375,000)
and was one of the largest to be put up in Ceylon since the war.

In In 1960 Lever Brothers first entered the baby care market in Ceylon. Pears Baby Powder was the first
product to be launched, and this was followed by Pears Baby Soap (1964) and Pears Baby Cologne (1979).
These were all manufactured locally. the 1980s a campaign was launched whereby each new mother was
given a free sample of Pears Baby Soap and Powder, as well as a pamphlet containing advice on baby care,
hygiene, and immunisation. This pack was developed with the co-operation of the United Nations Children's
Fund, and the Health Education Bureau. Initially pilot projects were run, but the scheme was extended in 1987
so that 20,000 mothers would receive Pears products and advice, and 60,000 mothers the year after.

In 1967, Lever employees travelled over 40 miles from the factory in Colombo to perform Shramadana, the
donation of labour, by helping to construct a new building in a school for deaf and blind children. They had
visited the same school three years previously to create a playground there. This was part of the celebrations
for the day of `Poson', the full moon day in June when Buddhists celebrate the introduction of the religion.

Around 1969, a new personnel building was built at the Lever Brothers (Ceylon) factory - it consisted of a
reception centre, dental clinic and medical services centre, personnel office, a co-operative shop, an office for
the Workers' Death Benefit Society, and a dormitory for workers delayed at the factory late at night.

From 3 July 1991, the name of the company was changed from Lever Brothers (Ceylon) Ltd to Unilever Ceylon
Ltd. This became Unilever Sri Lanka Ltd in around 2004.

In 2006, Amal Cabraal became the Chairman of Unilever Sri Lanka, replacing Ehsan Malik who had been in
charge for five years. Cabraal was only the second Sri Lankan to hold this position (the first was Stanley
Jayawardena who retired in 1987).

In 2011, the brands available in Sri Lanka included the following:

- Astra margarine
- Brooke Bond Ceylonta tea
- Bru
- Flora
- Knorr
- Laojee tea
- Lipton
- Marmite
- Comfort
- Rin
- Sunlight
- Surf Excel
- Vim
- Axe
- Clear shampoo
- Dove
- Fair & Lovely
- Lifebuoy
- Lux
- Pears
- Pond's
- Rexona
- Signal
- Sunsilk
- Vaseline
- Wonderlight