Sharmila found a couple of birdies on the back-nine after being five-over for the front nine. She finished with a total of 12-over 156 and crashed out of the tournament.
It was the fourth successive missed cut for Sharmila, who had earlier failed to make the final rounds at Turkish Airlines Open, Unicredit German Open and Deloitte Ladies Open.
Meanwhile, Australian Rebecca Artis continued to lead after grinding out a second round of one-under 71 in hot and windy conditions at Golf Gerre Losone. Artis, who opened with a career-low 64, was nine-under at the halfway stage of the Ladies European Tour's third biggest prize-money tournament.
Defending champion Diana Luna (67-70) and Veronica Zorzi (69-68) joined England's Florentyna Parker (66-71) two strokes behind.