The question is a bit lacking in detail but I assume that somehow your sister associated the phone to her Apple ID. You will need to tell us exactly what she did to get her contacts on your phone. One way or another your sister will owe you one by the time this is fixed.
Below is the method used to prepare an iPhone for sale, it will give you an idea how complex handing an iPhone over to a new user actually is and it may well be what you will have to do.
Either way your sister will owe you one.
What to do before selling or giving away your iPhone, iPad, or iPod touch
Learn what to do before you sell or give away your iPhone, iPad, or iPod touch.
If you still have your iOS device
Before you sell or give away your iOS device, make sure that you've removed all of your personal information. Follow these steps to protect your data and get your device to its factory default state for the new owner:
1. Back up your device.
2. Sign out of iCloud:
1. Tap Settings > iCloud, scroll down, and tap Sign Out. In iOS 7 or earlier, tap Delete Account.
2. Tap Sign Out again, tap Delete from My iPhone, then enter your password.
3. Go to Settings > General > Reset, then tap Erase All Content and Settings.
• This will completely erase your device, including any credit or debit cards you added for Apple Pay and any photos, contacts, music, or apps. It will also turn off iCloud, iMessage, FaceTime, Game Center, and other services.
• If you're using iOS 7 or later and have Find My iPhone turned on, your Apple ID and password will be required. After you provide your password, the device will be erased and removed from your account so that the next owner can activate it.
• Your content won't be deleted from iCloud when you erase your device.
When the new owner turns on the device for the first time, In this case this will be you Setup Assistant will guide them through the setup process. If you use a computer to backup you will be guided to plug in to iTunes. At this point you can restore from an old backup (my choice) this will restore all your information, contacts, apps, music etc. or set up as a new phone and start from scratch.
Important: Don't manually delete contacts, calendars, reminders, documents, photo streams, or any other iCloud data while signed in to your iCloud account, or the content will also be deleted from the iCloud servers and all of your devices that are signed in to iCloud.