Why it's the capital
In 1769 the Portuguese governor moved the colony's administration east from Lifau, bringing 1,200 people to set up a new capital at Dili. When Timor-Leste became independent in 2002, Dili became the capital of the new country.
Capital of Timor-LesteA narrow strip of flat land, no more than about 4 km wide between the sea and the mountains, holds Dili on the north coast of the island of Timor. Atauro Island lies offshore to the north.
In 1769 the Portuguese governor moved the colony's administration east from Lifau, bringing 1,200 people to set up a new capital at Dili. When Timor-Leste became independent in 2002, Dili became the capital of the new country.
Timor-Leste is the eastern half of the island of Timor, north-west of Australia: Dili is on the north coast, a little west of the middle of the country's shoreline.
Sources: Wikipedia: Dili