1 percent Friday becoming the best performing market in the world, up 110.9 percent so far according to Bloomberg newswires data, beating Mongolia at 109.7 percent. Bangladesh was a distant third at 56.4 percent.
Colombo's benchmark All Share Price Index closed at 7,147, topping the 7,000 mark, and up 150.56 points.
The more liquid Milanka price Index closed at 7,829.05, up 3.66 percent (276.34 points).
Turnover was six billion rupees, according to provisional stock exchange data.
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Aitken Spence Hotel Holdings, which Thursday announced a deal with Six Senses for a new resort on the south coast, was the day's third highest gainer, closing at 854.30 rupees, up 134.30 rupees or 18.7 percent.
Colombo Dockyard, which was heavily traded, closed at 284.90 rupees, up 11.20, with several off-the-floor deals done at 270 rupees.
Last year Colombo stocks rose 120 percent, ending the year as the world's second best performing market.
Sri Lanka emerged from a 30-year war in May 2009, raising optimism about future growth.
But increasingly there are fears of a stock market bubble, amid lower-than-usual interest rates and excess liquidity