The capital of Sri Lanka is called Colombo. It is debatable how the name came into existence. While some believe that it was a distortion from the old name of Kolam, others believe it was taken from the Coconut palm. No matter which fact the name was taken from it is known as Colombo by everyone today. The city is the largest town in the island country of Sri Lanka. It is the economic capital of the country as well as the administrative one.