Colombo Stock Exchange shares hit a new record on Wednesday (21) led by state funds buying up banking shares, brokers said, after the ruling party recorded a landslide victory in Parliamentary polls.

The All-Share Price Index hit a new all-time high of 4,052.10 points, surpassing its previous high of 4,044.94 on Tuesday. It closed 0.41 percent firmer at 4,038.89.

"Going forward the market will move up further on earnings," said Prashan Fernando, Chief Operating Officer at Acuity Stockbrokers. "Investors are very positive after the polls."

Analysts said investors expect the government to come up with long-needed fiscal reforms to improve the investment climate.

Earning hopes in banking, tourism and plantation sector also helped boost local investor sentiment, quoting analysts, Reuters reported.