• Market hits new record; up 1.8 pct 
• Earnings outlook, stability, low rates drive bours
• Rupee sluggish  in sluggish trade

 COLOMBO, Sept 13 (Reuters) - Sri Lanka's benchmark share index hit a new record high on Monday on an improved corporate earnings outlook, hopes of a stable economy and low interest rates, analysts said.

 Sri Lanka's main share index .CSE jumped 1.79 percent or107.75 points to hit a record high of 6,131.16. It touched an intraday high of 6,153.60 points. The index is Asia's best performer in 2010 with a 81.1 percent gain.

 "The primary (sales and demand) data of listed companies are promising," Danushka Samarasinghe, an economist at Frands Consultants, told Reuters. "So investors are hoping for better earnings as activities have risen since the end of the war."

 Other two analysts said low interest rates and hopes of economic stability after the ruling party easily passed a constitutional amendment last week have also helped boost the bourse. [nSGE67T0AC] [nSGE6860BG]

 Market heavyweight and top conglomerate John Keells Holdings JKH.CM jumped 5.32 percent, while share split hopes drove up leasing firm Capital Trust LOLC.CM by 10 percent.

 Turnover was 4.3 billion rupees ($38.2 million), more than seven times the 2009 average. Foreign investors bought a net 15.4 million rupees' in shares, but they have sold a net 14.1 billion rupees' worth this year.

 FACTORS TO WATCH:

 - If there will be further cut in policy rates on Wednesday

 - Economic growth in the April-June quarter expected to be
announced on Wednesday

 - Investor reaction to Sri Lanka's $1 billion sovereign bond at road shows this week

 - Tax reforms promised by the Govt.

source - www.reuters.com