Jazz group touring see capital city (7)
I believe the answer is:
colombo
'capital city' is the definition.
(commercial capital of Sri Lanka)
'jazz group touring see' is the wordplay.
'jazz group' becomes 'combo' (synonyms).
'touring' indicates putting letters inside (touring can mean going round).
'see' becomes 'lo' (archaic word meaning 'look!').
'combo' placed around 'lo' is 'COLOMBO'.
(Other definitions for colombo that I've seen before include "Capital of Sri Lanka" , "Sri Lankan city" , "Asian capital" , "Sri Lankan port" , "City of Sri Lanka" .)