Your guess may be right.
Polish word "bialy" as well as the similar words in other Slavic languages derivates from the same root as Ancient-Indian bhālam - shine, glitter (e.g. Ancient-Island bal - fire).
As for the "blue", according to this site http://www.etymonline.com it meant formerly various light colors, incl. blue, blond and yellow. Thereforу it also me originate from the same Indo-European root, as Slavic white.