Getting syntax error, unexpected ':', expecting '=' in Ruby

I am very new to Ruby and trying to run a script ,When I am trying to run a Ruby script like below, I am getting

> ruby test.rb 
test.rb:53: syntax error, unexpected ':', expecting ')'
  All::Config.new_global_config(domain: domain, realm: realm)
                                          ^
test.rb:53: syntax error, unexpected ':', expecting '='
  All::Config.new_global_config(domain: domain, realm: realm)

When I see ruby version, it says:

> ruby -version
ruby 1.8.7 (2012-02-08 patchlevel 358) [x86_64-linux]
-e:1: undefined local variable or method `rsion' for main:Object (NameError)

Any pointers? Is it because of the version? 1.8.x instead of 1.9 or more?