Nepal faced a 76-68 defeat against Sri Lanka in its last match on Sunday.
Although, Nepal took the first quarter 23-18 against Sri Lanka at the Sri Kanteerava, Bengaluru and went down in the last three quarters.
Although Nepal lost the second quarter 18-17, it was still ahead by four points till the break.However, Nepal failed to put the same spirit in the third and fourth quarters. Sri Lanka claimed the third quarter 22-15 and fourth quarter 18-14.
Ayush Singh scored the highest 13 points, while Bikram Joshi and Sadish Pradhan scored 12 points each for Nepal.
Randima Sooriyaachchi scored 16 points and Thimothi Thineshkanth added 14 points for Sri Lanka.
Nepal lost its opener against India 90-37 and faced 72-68 defeat against the Maldives. Nepal beat Bhutan 72-58 and Bangladesh 87-74.
Meanwhile, host India qualified for the FIBA Asia Championship after defeating Sri Lanka on Sunday.