Bond, for one, traps Sri Lankan in European capital (4)

I believe the answer is:

oslo

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'european capital' is the definition.
(capital of Norway)

I cannot understand how the remainder of the clue works.

(Other definitions for oslo that I've seen before include "Northern city" , "foreign port" , "where Ibsen lived under another name" , "Norway's capital city" , "Nordic capital" .)

I've seen this clue in The Hindu.

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