Sri Lankan shares hit a record high on Monday on high turnover. The All-Share Price Index surged 1.4 percent to hit a new record high of 4,246.08 points, surpassing its previous all-time high of 4,197.22 hit on Apr. 30. It closed 30.34 points or 0.72 percent up at 4,219.22.

The bourse is up 24.6 percent so far this year, making it Asia's best-performing market, Reuters said.

The rupee currency LKR closed firmer at 113.60/113.70 per dollar from Friday's close of 113.93/113.70 as exporter dollar conversions and inflows related to stock market transactions, currency dealers said.

"Lots of things are turning in to very positive territory, so investors are buying in for future," quoting Harsha Fernado, Chief Executive at SC Securities, Reuters reported. He added that the market will see a correction.

Analysts said heavy retail buying has driven the bourse's price-to-earning ratio to over 20 now since the end of the war in May last year, Reuters added. Traders said the market would continue to move up with hopes of better earnings, post-war economic development and foreign direct investments under the newly elected stable government despite delay in the budget.

Foreign investors bough a net 286 million rupees' worth of shares, data showed. They have sold a net of around 16.2 billion rupees' ($142.5 million) worth of shares so far this year.

They sold a net 789 million rupees last year and were net sellers for the first time since 2001.

Sri Lanka will introduce fiscal reforms including tax changes in its 2011 budget, not in this year's as had previously been pledged, the Treasury Secretary said on Thursday.

Traders said low interest rates kept turnover up.

The day's turnover was 3.3 billion rupees ($28.7 million), well above the 2009 average of 593.6 million rupees.

Oil palm share, conglomerate Bukit Darah BUKI.CM jumped 10 percent to 4,812.50 rupees a share while shares in conglomerate John Keells Holdings JKH.CM rose 3 percent to 191 rupees.

Shares in biggest listed lender Commercial bank of Ceylon closed 0.21 percent firmer at 240 rupees a share.

The market has shot up over 182 percent since it hit a four-year low on Dec. 30, 2008, rising in anticipation of the end of a 25-year civil war. That came in May and then an IMF loan in July helped boost investor confidence.

The interbank lending rate or call money rate CLIBOR rose to 9.050 from Friday's 9.025 percent.