Origin of the name "NEWAR"

The terms "Nepal", "Newar", "Newa" and "Nepa" are phonetically different forms of the same word, and instances of the various forms appear in texts in different times in history. Nepal is the learned (Sanskrit) form and Newar is the colloquial (Prakrit) form.  A Sanskrit inscription dated to 512 in Tistung, a valley to the west of Kathmandu, contains the phrase "greetings to the Nepals" indicating that the term "Nepal" was used to refer to both the country and the people.
The term "Newar" or "Newa:" referring to "inhabitant of Nepal" appeared for the first time in an inscription dated 1654 in Kathmandu. Italian Jesuit priest Ippolito Desideri (1684–1733) who traveled to Nepal in 1721 has written that the natives of Nepal are called Newars. It has been suggested that "Nepal" may be a sanskritization of "Newar", or "Newar" may be a later form of "Nepal". According to another explanation, the words "Newar" and "Newari" are vulgarisms arising from the mutation of P to V, and L to R.
As a result of the phonological process of dropping the last consonant and lengthening the vowel, "Newa" for Newar or Newa, and "Nepa" for Nepal are used in ordinary speech.