\documentclass{report}

\usepackage[svgnames]{xcolor}
\usepackage{fullpage}
\usepackage{listings}
\usepackage{hyperref}

\hypersetup{colorlinks=true,linkcolor=DarkRed}

\lstset{
  basicstyle=\ttfamily\small,
  columns=fullflexible,
  breaklines=true,
  postbreak=\mbox{\textcolor{red}{$\hookrightarrow$}\space},
}

\lstdefinelanguage{sail}
  { morekeywords={val,function,cast,type,forall,overload,operator,enum,union,undefined,exit,and,assert,sizeof,
      scattered,register,inc,dec,if,then,else,effect,let,as,@,in,end,Type,Int,Order,match,clause,struct},
    keywordstyle={\bf\ttfamily\color{blue}},
    morestring=[b]",
    stringstyle={\ttfamily\color{red}},
    morecomment=[l][\itshape\color{DarkGreen}]{//},
    morecomment=[s][\itshape\color{DarkGreen}]{/*}{*/},
    deletestring=[bd]{'},
    escapechar=\#,
    emphstyle={\it},
    literate=
      {\{|}{{$\{|$}}1
      {|\}}{{$|\}$}}1
  }

\lstset{language=sail}

\def\sail{\trivlist \item\relax}
\def\endsail{\endtrivlist}

\begin{document}

\include{out}

\end{document}