Small country lane initially badly laid across island (8)

Guardian Cryptic #28941 | 16 Down | 2022-12-15
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I haven't cracked this one yet — but the brilliant team at Fifteensquared have:

Lilliput is a fictional country from Gulliver’s Travels , inhabited by very small people [wiki] L-ane + ILL=”badly” + PUT=”laid”, around I (island)

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