Impact to a system integrator (fire) from Chinese One Belt One Road Initiatuve

2. What is One Belt, One Road?
• Its focus is to re-energize ancient Silk Road trade routes to open markets
both within and outside the region.
“From the second century BC to the end of the fourteenth century AD, a great trade route originated from
Chang'an (now Xian) in the east and ended at the Mediterranean in the west, linking China with the
Roman Empire. This ancient route not only circulated goods, but also exchanged the splendid cultures of
China, India, Persia, Arabia, Greek and Rome. Many great events happened on this ancient road, making
the trade route historically important”
The Travel China Guide (2016)
• China has taken initiatives to re-connect adjacent continents using the
historical marine and land routes.
• The economic aim of One Belt One Road is to correct infrastructure
deficiencies and improve connections between greater Asia and Europe

3. Geography

4. Role of Sri Lanka
• Sri Lanka has been a critical milestone in the business route from
Europe to Asia.
“Sri Lanka too played an active role in the ancient Silk route of the ocean. Situated strategically in
the middle of the ancient Silk route of the ocean between East and West, Sri Lanka functioned as an
Centerport of trade for exchanging commodities. Archaeological excavations in many parts of Sri
Lanka have unearthed large hoards of Roman and Chinese coins, which indicate that merchants
from West and East met in Sri Lanka and exchanged wares”
Talking Economics (2017)

5. Impact on Sri Lanka
Opportunities
• Opening new windows- China has the strongest economy in Asia surpassing Japan and India.
• Tying up political relationships- Since Sri Lanka is a key milestone in maritime silk road, vessels
which carries goods up and down will use Colombo harbor as a
service point.
• Development in Manufacturing Industry- China is the largest manufacturer in the world
• Development in infrastructure- Once Sri Lanka become a node in the silk route, foreign
investments will be poured in to develop local infrastructure.

6. Impact on Sri Lanka
Threats
• Severe Competition for Local Businesses- Larger Chinese conglomerates will kill local businesses
with their capacity
• Pressure from India- Nearest neighbor country India will not tolerate the relationship between
China and Sri Lanka, so that pressure will come at a political level.
• Threat to National Security- Sri Lanka will be a closer ally to China so that in case of a
war, country is prone to enemy attacks.
• Threat to Professional Services- Chinese workers will as expats in countries like Sri Lanka for low
salaries which in turn disturb the job market.
• Expat population increase- Chinese people will start colonizing in Sri Lanka with the exchange of
goods & services.

7. Impact to Fire-X
Opportunities
• Chinese and other foreign investors will invest in Hotels and Apartments to cater the increasing
population.
• Partnerships with well known Chinese companies will expand the business portfolio of Fire-X
• Development of infrastructure will reduce the operational costs

8. Impact to Fire-X
Threats
• Major construction companies in China will engage in projects which are within the range of Fire-
X so that the sales funnel will be narrow.
• Increase in low cost labor force will challenge the technicians in the MEP industry.
• Well known brands like Notifier, Tyco will be replaced by less costly Chinese's brands.
• Economies of scale in Chinese contractors will kill small contractors.
• Most projects will be fast-track so it makes difficult to achieve deadlines with conventional
methods.

9. Thank You!