Colombo is the commercial capital and largest city of Sri Lanka. It is located on the west coast of the island and adjacent to Sri Jayawardenepura Kotte, the legislative capital of Sri Lanka. Colombo is often referred to as the capital since Sri Jayawardenapura Kotte is within the urban area of, and a satellite city of, Colombo. Due to its large harbour and its strategic position along the East-West sea trade routes, Colombo was known to ancient traders 2,000 years ago. It was made the capital of the island when Sri Lanka was ceded to the British Empire in 1815, and its status as capital was retained when the nation became independent in 1948. In 1978, when administrative functions were moved to Sri Jayawardenepura Kotte, Colombo was designated as the commercial capital of Sri Lanka.