Colombo Stock Exchange (CSE) hit a fresh record on Monday (Dec 28) led by strong retail buying, on expectation of better profits due to post-war economic optimism.

The All-Share Price Index of the Colombo Stock Exchange increased 1.75 percent or 57.74 points to a fresh record of 3,350.50, surpassing its previous high of 3,340.56 points on Wednesday.

The bourse closed 1.58 percent, or 52.13 points, firmer at 3344.89. It has risen 122.5 percent so far this year.

Foreign investors have sold 576.3 million rupees worth of stocks so far this year, bourse data showed, compared to a record net foreign inflow of 13.9 billion rupees in 2008.

"Low interest rates and expectations on better profits due to post-war economic optimism have been the main reasons for heavy buying," quoting Hussain Gani, Associate Director at Asia Securities, Reuters reported.

The day's turnover was 563 million rupees ($4.9 million), driven by local retail buying and more than last year's daily market average of 464 million rupees.