The Śreṣṭha or is the second largest Newar caste group, occupying around 21% of overall Newar population, or about 1.1% of Nepal’s total population. It is believed that the word Srēṣṭha is derived from the Newar word Śeśyah, which itself is derivation of a Sanskrit word Sista meaning 'noble', although literal meaning of the word also translated to 'best or important.' "Shrestha" itself was later adopted as the specific family surname by members of this high-caste Hindu group, although there are over 50 other recognized surnames of Srēṣṭhas. Despite their numerically low national population, their high-status and socio-economic capital puts Śreṣṭhas amongst the most socio-economically privileged and politically over-represented segments of Nepali population.

Newar, or Nepami, are the historical inhabitants of the Kathmandu Valley and its surrounding areas in Nepal and the creators of its historic heritage and civilisation. Newars form a linguistic and cultural community of primarily Indo-Aryan and Tibeto-Burman ethnicities following Hinduism and Buddhism with Nepal Bhasa as their common language. Newars have developed a division of labour and a sophisticated urban civilisation not seen elsewhere in the Himalayan foothills. Newars have continued their age-old traditions and practices and pride themselves as the true custodians of the religion, culture and civilisation of Nepal. Newars are known for their contributions to culture, art and literature, trade, agriculture and cuisine. Today, they consistently rank as the most economically and socially advanced community in Nepal, according to the annual Human Development Index published by UNDP. Newars are ranked the 8th largest ethnic group in Nepal according to the 2021 Nepal census numbering 1,341,363 people constituting 4.6% of the total population.