In most varieties of modern Standard Elithoan Celinese, the only consonants referred to as "palatalised consonants" are final g, pronounced as [ç], like the German ich-laut, and s before [e] and [i], which is no longer an alveolar-palatal [ɕ] but a retroflex [ʂ]. However, the major influence of the capital's dialect upon the orthography means that there are vestiges of the "Laurien palatal" in the standard language.
In some influential dialects at the time at which a pan-Elithoan Celinese standard was being deliberated upon, there was a great deal of palatalisation - so not only would sío (be-PRS.3SG), today usually pronounced [ʂiɔ̯] or [ʂɔ], have back then been pronounced ['sʲiːo] in the accent of Ioðinbêr, but né was also pronounced [nʲɛː] or [ɲe], and té crestí as [ce kɾɛs'ci]. This was a feature that was then very prominent in the non-rural Central South-East - Ioðinbêr, Leinoch, Mylombeir and other cities of the region all had it to some extent, considered to be an innovation that spread out of the capital of the Southern Lainoê Élineg. Very few other dialects had this palatalisation of consonants before /e/ and /i/, not even Chlasc, to which other innovations such as final <r> being /ʐ/ did spread.
There was some deal of controversy over whether these sounds would be mentioned in the pronunciations of the first dictionary. In the end, they didn't - né in the first dictionary was described as /ne/, like it was pronounced outside the Central South-East. These days, even in Ioðinbêr, palatalisation in front of e and i is a very rare thing to hear outside of the oldest generations.
But what has survived, to some extent, is final consonant palatalisation. At the time of establishing a pan-Elithoan Celinese, some dialects (such as that of Perís and Chlasc) had a division between words with [ai̯] and words with [aə̯]. These were the same words that were uniformedly pronounced with an [ai̯] in other varieties of the language, such as that of Danðí, Iferðí, Aír, etc. Thus airír and ailereg, pronounced [ˈairir] and [ˈailɛrɛg] in most Northern and Western Celinese languages, were pronounced differently - [aɪˈɾiʐ] and [aə̯ˈlɛɾɛç] or [aiəˈlɛɾɛç] in Perís and Chlasc. Words like ailereg were pronounced with the ə before the consonant being replaced with a yod after the consonant in most Ioðinbêr varieties - thus [ˈalʲɛɾɛç] or even [ˈaʎɛɾɛç].
The dictionary creators marked this diphthong or palatalisation with a dotless i - aılereg, neıs ([nɛə̯s] or [nɛʂ]) - as a didactic tool, but recommended that it not be used outside of dictionaries, schoolbooks and guides for secondary language learners (though some use it anyway). There were hundreds of words that were affected by this that aren't know - tain (much, many) is now nearly uniformedly [tai̯n], but was once [taə̯n] or [tanʲ]. Since the Ronð Afuirdíreg go Lechlyfrírain go g-Celínec is generally descriptive rather than prescriptive, it surveys how the language has developed every decade and makes changes to the dictionary accordingly.
So Celinese - or at least, the Celinese central urban acrolect and those who incorporated elements of it into their own styles of language - had far more palatalisation than it does now. In Ioðinbêr, whilst palatalisation of consonants before /e/ and /i/ is nearly extinct, there are still many, many words that are palatalised that aren't in most other dialects. Lainsín - [laɪnˈʂin] in today's dictionary, was transcribed as [laɲˈʂin] only twenty-four years - two dictionary editions - ago. As Ioðinbêr declines in population and others grow - and as other regions grow in national prominence and influence - the lexicographers are much less in thrall to the idiosyncrasies of the Ioðinbêr accents.
Two hangovers from pervading Ioðinbêr influence that remain in most (if not all) dialects today. <sé> and <sí> as /ʂe/ and /ʂi/, and final g being pronounced as /ç/. So, séilë (day) and sí (to be/I am) are pronounced as /ˈʂeɪlə/ and /ʂi/ respectively. <s> is also pronounced as /ʂ/ when written <ıs>. Only in the Extreme North West, and in the Eastern Borders (and Celinophone Western Jinyero) will you not hear these two instances.
The most common 'palatised' consonant, s, is usually not truly palatal. Whilst some dialects still pronounce a soft s as /sj/, nearly all urban speakers pronounce it as /ʂ/. S is pronounced in this manner before é and í - séilë (day) and sí (to be/I am) are pronounced as [ˈʂei̯lə] and [ʂi] respectively. <s> is also pronounced as /ʂ/ when written <ıs>. The ı is silent, serving only to alter the S. So neıs is pronounced [nɛʂ], whilst theoretical *neis would be pronounced /nɛis/.
In Ioðinbêr dialect, /c/ ('ty') /ʎ/ ('ly') and /ɲ/ ('ny') are still found in the digraphs ıc, ıl and ın. When you encounter one of these three, remember that the ı is not pronounced as a vowel, but is instead a way to modify the following consonant. However, most dialects outside of the capital region no longer have these sounds - aılereg, for example, is usually pronounced [aə̯ˈlɛɾɛç] or [aːˈlɛɾɛç].