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Message: <blockquote data-quote="lkdood" data-source="post: 5636172" data-attributes="member: 92282">Sri Lanka's stock market .CSE hit a record high on Monday on investor hopes of strong post-war economic growth amid declining interest rates and easing inflation, analysts and traders said.        The All-Share Price Index of Colombo Stock Exchange rose 1.8 percent to 3,072.53 points by 0524 GMT.The previous record of 3,038.48 points was set on Feb. 19, 2007, Reuters data shows.        It is the best performing bourse in Asia and the world this year with a return of over 104 percent so far, after a 40 percent drop in 2008. The bourse's performance is around double that of the benchmark emerging market equities index .MSCIEF, Reuters data showed.        "The economic numbers are improving more than expected," Danushka Samarasinghe, head of Research at Asia Securities told Reuters.        "The last quarter of this year and the next year are expected to grow much higher due to optimism on Sri Lanka's post-war economy. We expect the index to move further up as the psychological barrier of previous record is surpassed."        Sri Lanka's stock market has been rising since mid-July on declining interest rates, expectations of high post-war economic growth, more market liquidity, increased confidence after an IMF loan, an upgraded credit rating outlook and foreign inflows.     Sri Lanka ended a 25-year war against Tamil Tiger rebels in May and the market has risen over 60 percent since then.        Sentiment also got a boost after the central bank cut its key policy rates by 50 basis points last month and as inflation hit a record low.        "Interest rates sliding down as low as 10 percent helped the market," said Harsha Fernando CEO at the SC securities in Colombo. "There are a lot of foreign interest are seen."        Analysts last week said investors in fixed income assets have been shifting into the bourse on declining yield in government securities.        The central bank cut its key policy rates on Sept. 11 to four-year lows to compel commercial banks to boost private sector lending and spur faltering growth.Yields in the benchmark treasury bills fell 22 basis points to a five-year low of 9.48 percent at a weekly auction on Wednesday, while annual inflation hit a record low of 0.7 percent in September.<a href="http://in.reuters.com/article/domesticNews/idINCOL17522820091005?sp=true" target="_blank">reuters</a></blockquote>

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