Dili is the capital and largest city of East Timor. It lies on the northern coast of the island of Timor, in a small area of flat land hemmed in by moun…Dili is the capital and largest city of East Timor. It lies on the northern coast of the island of Timor, in a small area of flat land hemmed in by mountains. The climate is tropical, with distinct wet and dry seasons. The city has served as the economic hub and chief port of what is now East Timor since its designation as the capital of Portuguese Timor in 1769. It also serves as the capital of the Dili Municipality, which includes some rural subdivisions in addition to the urban ones that make up the city itself. Dili's growing population is relatively youthful, being mostly of working age. The local language is Tetum; however, residents include many internal migrants from other areas of the country.