Sri Lanka's shares .CSE hit more than a 15-month high on Thursday led by institutional buying of blue chips and retail-driven hotel share purchase, on expected post-war economic growth, analysts and traders said.

The bourse in the first three hours of trading rose 1.56 percent to hit 2,592.94 points, its highest since May 23, 2008 and its fourth straight rise, Reuters data showed.

"This is mainly due to several positive news (items) since the war, and long-awaited investors are now buying shares," Channa Amaratunge, director at CT Capital, told Reuters.

Analysts and traders said a $2.6 billion International Monetary Fund (IMF), large foreign buying of the island nation's government securities and a sovereign credit rating outlook upgrade all have helped boost the post-war bourse.

Analysts said retail investors have been driving up some hotel shares on an expected increase in hotel rates and surge in post-war tourist arrivals.

Traders said investors are optimistic on high foreign inflows after ratings agency Standard & Poor's on Tuesday raised its outlook on Sri Lanka to stable from negative citing the recent IMF loan and affirmed its "B" long-term foreign currency rating.

Source Reuters