At least 17 people have died of kalazar, a disease similar to encephalitis in south-eastern parts of the country, a Nepali language daily reported on Thursday. "So far 17 persons in Sihara district, to the south-east, have lost their lives due to kalazar, which is caused by sandflies, while dozens have been affected by this deadly disease," the Himalayan Times repported hospital sources in Sihara district as saying.