Hello Syed,
Wireless_uart_demo does not have lower power support as is, you need to add Low Power files that located at: <KW40Z_Connectivity_software_PATH>\ConnSw\framework\LowPower\ and modify application source file.
Indeed, you can look at heart_rate_sensor example that includes Low Power files (although this feature is disabled in the project) and you can use it as reference. Just enable this definition in PWR_Configuration.h as it is shown:
//-----------------------------------------------------------------------------
// To enable/disable all of the code in this PWR/PWRLib files.
// TRUE = 1: Use PowerDown functions (Normal)
// FALSE = 0: Don't use PowerDown. Will cut variables and code out. But
// functions still exist. Useful for debugging and test purposes
#ifndef cPWR_UsePowerDownMode
#define cPWR_UsePowerDownMode FALSE
#endif
And try by using PWR modes' APIs.
Just as reference, there is a document called Bluetooth Low Energy Application Developer's Guide (BLEADG) located at <KW40Z_Connectivity_software_PATH>\ConnSw\doc that talks about Low Power functionality. (Chapter 10. Low Power Management). I think this could be helpful to understand the low power management in KW40Z.
I hope this can help you!
Regards,
Isaac Avila