Blue Arc Manufacturing and the BOI have entered into an agreement to establish Sri Lanka’s first containerized substation assembly facility, dedicated to producing innovative electrical systems designed for some of the world’s most demanding environments. By combining a highly skilled local workforce with international engineering standards, Blue Arc is delivering high-end electrical infrastructure solutions to Australia’s mining, tunneling, and construction sectors.

The company’s core product portfolio includes skid substations, containerized substations, and containerized switch rooms. Blue Arc specializes in assembling these advanced electrical systems for the metals, energy, industrial, and infrastructure sectors, supporting multiple large-scale projects across Australia.

All units are fully assembled, tested, and quality-controlled in Sri Lanka in accordance with international standards before being exported as self-contained systems. This modular approach enables rapid deployment at project sites while offering greater speed, efficiency, and flexibility to global clients. These products are both innovative and distinctive, positioning Sri Lanka’s substation industry on the global stage. While currently focused on the tunneling, mining, and construction sectors in Australia, Blue Arc is also expanding into renewable energy segments, including solar and hydropower.

The global market for electrical system design is experiencing strong growth, driven by the need for faster construction, improved energy efficiency, and the integration of smart technologies.

Key trends shaping the future of the industry include:

Prefabrication and Off-site Assembly: A growing shift toward modular, plug-and-play solutions that reduce on-site labor, enhance quality assurance, and significantly shorten project timelines.
IoT and Smart Connectivity: Integration of advanced PLC and SCADA-based systems for remote monitoring, switching, predictive maintenance, and performance optimization.
Resilience in Harsh Environments: Engineering solutions designed to perform reliably under extreme climatic and industrial conditions where safety and uptime are critical.
Safety-Driven Design: Enhanced fire protection systems, secure locking mechanisms, emergency lighting, and robust enclosures built for high-stress environments.
Factory-Certified Quality: All low- and medium-voltage equipment is tested in compliance with IEC standards, supported by rigorous QA/QC processes to ensure superior product quality.

The supply chain for electrical components spans China, India, Australia, and local sources, with final assembly, testing, and delivery carried out in Sri Lanka. The manufacturing process leverages local expertise in mechanical, electrical, lifting, and welding disciplines.

This initiative not only strengthens Sri Lanka’s position in the global electrical manufacturing sector but also creates valuable knowledge transfer opportunities. The local workforce will gain hands-on experience in producing high-quality, export-ready electrical systems while meeting the stringent standards of international markets.
SriLankan Airlines reports revenue growth driven by AI and ML-powered revenue management system
SriLankan Airlines has reported a notable increase in revenue following the implementation of a next-generation, AI and machine learning (ML)-powered Origin and Destination (O&D) revenue management platform.

The advanced system enables dynamic pricing and smarter inventory optimisation, while enhancing the passenger experience across all sales channels through real-time seat availability and predictive analytics.

Commenting on the development, Kshanaka Saparamadu stated, “Embracing the latest revenue management technology reflects our commitment to continuous innovation and digital transformation. With the introduction of PROS Revenue Management Advantage and Amadeus Revenue Availability and Active Valuation, we are not only refining our processes but also positioning ourselves for long-term success in modern airline retailing, ensuring we remain competitive in a rapidly evolving industry.”

Chamara Perera added, “This transition to a dynamic, integrated revenue management system underscores our strategic focus on agility in an increasingly competitive landscape. As the aviation sector undergoes rapid digital transformation, we are strengthening our ability to respond to market shifts and meet the evolving expectations of today’s travellers.”

Powered by AI-driven solutions from PROS and Amadeus, the platform leverages advanced algorithms and ML models to better align capacity with demand, optimise premium seat allocation, and respond swiftly to market dynamics. These capabilities enhance agility, scalability, and yield performance, positioning the airline at the forefront of digital transformation in aviation.

Industry benchmarks indicate that O&D-based revenue optimisation models can deliver a 3%–5% increase in passenger revenue. This underscores the system’s contribution—alongside other strategic initiatives—to the 13% revenue growth recorded by SriLankan Airlines during the first three quarters of the 2025–2026 financial year.

Beyond financial performance, the initiative has strengthened collaboration between pricing, demand, and flight analysis teams, while also earning international and local recognition. The airline received the Growth Catalyst Award at the Outperformer Customer Awards 2025 in Las Vegas by PROS, as well as the Silver Award in the AI and Data Science category at the National Project Management Excellence Awards 2025 in Colombo, presented by the Project Management Institute Sri Lanka Chapter.
The BOI has facilitated Blue Arc Manufacturing, a pioneer in establishing Sri Lanka’s first specialised substation assembly operation for global export