The issue goes away if I use 179 version of syntax/sh.vim. Here is how I fixed it locally.
mkdir -p ~/.vim/syntax cd ~/.vim/syntax wget http://www.drchip.org/astronaut/vim/syntax/sh.vim.gz gunzip sh.vim.gz Related discussion on vim mailing list: https://groups.google.com/forum/#!topic/vim_use/3qEZ97xdPA0 thanks raju