  Aims: IKT 16 is an X-ray and radio-faint supernova remnant (SNR) in the Small
Magellanic Cloud (SMC). A previous X-ray study of this SNR found a hard X-ray
source near its centre. Using all available archival and proprietary XMM-Newton
data, alongside new multi-frequency radio-continuum surveys and optical
observations at H-alpha and forbidden [SII] and [OIII] lines, we aim to
constrain the properties of the SNR and discover the nature of the hard source
within. Methods: We combine XMM-Newton datasets to produce the highest quality
X-ray image of IKT 16 to date. We use this, in combination with radio and
optical images, to conduct a multi-wavelength morphological analysis of the
remnant. We extract separate spectra from the SNR and the bright source near
its centre, and conduct spectral fitting of both regions. Results: We find IKT
16 to have a radius of 37+-3 pc, with the bright source located 8+-2 pc from
the centre. This is the largest known SNR in the SMC. The large size of the
remnant suggests it is likely in the Sedov-adiabatic phase of evolution. Using
a Sedov model to fit the SNR spectrum, we find an electron temperature kT of
1.03+-0.12 keV and an age of 14700 yr. The absorption found requires the
remnant to be located deep within the SMC. The bright source is fit with a
power law with index 1.58+-0.07, and is associated with diffuse radio emission
extending towards the centre of the SNR. We argue that this source is likely to
be the neutron star remnant of the supernova explosion, and infer its
transverse kick velocity to be 580+-100 km/s. The X-ray and radio properties of
this source strongly favour a pulsar wind nebula (PWN) origin.
