Sudarshan was born Lumbini Raj Shakya at OkuL Baha, Lalitpur. His father was Nhuchhe Raj Shakya and mother Harkha Maya Shakya. In 1950, he travelled to Kushinagar, India to be ordained a novice monk and was given the dharma name Sudarshan. He received higher ordination in Sarnath.
Teacher and writer
Sudarshan graduated in literature in Hindi in 1954 and in Nepal Bhasa in 1967. He went on to receive a master's degree in Nepalese history, culture and archeology in 1979. He taught at various schools and was a lecturer at Tribhuvan University, Kathmandu. Sudarshan was a prolific writer, and greatly enriched the corpus of Nepal Bhasa literature. His favourite genre was drama, and he has written more than nine plays, most of them based on Buddhist themes. He also wrote short stories and poetry. In addition to Nepal Bhasa, he has written in Nepali and English. A number of his books on Buddhism have been prescribed as course books at the bachelor and Master's levels by Tribhuvan University. He was also engaged in journalism, and has been the editor of Nepal Bhasa Patrika daily, Dharmodaya and Lumbini monthlies and Purnima annual. Sudarshan was a member of the preparatory committee formed by the Lumbini Development Trust to establish a Buddhist university. Under its initiative, Lumbini Bauddha University was founded in 2004. Sudarshan became the abbot of Shri Kirti Vihara, a Theravada Buddhist monastery built in Thaiarchitectural style, which he established in Kirtipur in 1989. He also founded the Shri Kirti Buddhist Center here to teach Buddhism.
On 31 December 2012, the Postal Services Department of the government of Nepal issued a commemorative postage stamp depicting the portrait of Sudarshan to honor his contribution to the country. In 1996, he was decorated with the title Bhasa Thuwa by Nepal Bhasa Parishad for his service to Nepal Bhasa. His play Juju Jaya Prakash, on the last king of Kathmandu Jaya Prakash Malla, was awarded the Shrestha Sirapa in 1958. In a writing career spanning 1951–2002, Sudarshan produced plays, biographies, translations, essays and poetry. He has published more than 75 books in Nepal Bhasa and four in Nepali. His plays are Ambapali, Rastrapal, Amritmaya Maun, Juju Jaya Prakash, 85 Pau, Ashanka, Pratishodh, Nirvana and Patachara.