Colourful bird from which bank of Liffey? (4)

I believe the answer is:

lory

I'm a little stuck... Click here to teach me more about this clue!

'colourful bird' is the definition.
'lory' can be an answer for 'bird' (lory is a kind of bird). I'm not sure about the 'colourful' bit.

I cannot understand how the rest of the clue works.

Can you help me to learn more?

(Other definitions for lory that I've seen before include "Australasian parrot" , "Small parrot" .)

I've seen this clue in The Times.

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