I'm aware that Ala Mhigo fell to the Garlean Empire at some point in recent history - however, I also could have sworn that it was implied that Sharlayan had gotten wrecked at some point -also-. I'm having trouble backtracing my assumptions here, so maybe I'm just going crazy?

Edit: Hah, that's right, it was the NPC in Mor Dhona. Thanks, Roaran!