World No. 10 Srikanth, who had defeated Tian Houwei during the Badminton Asia Team Championships in February, played out of his skin before losing 13-21 21-17 22-24 to the All England finalist from China in a hard-fought match that lasted one hour and 23 minutes.
Srikanth, who has not crossed the second round of any Super Series event ever since his India Open win last year, will lose a lot of ranking points and it might put his Olympic qualification in danger as he will slip down the ladder when the BWF ranking list is released on April 7.
World No. 6 Saina, P V Sindhu and unheralded Rituparna Das, however, advanced to the second round of the USD 300,000 event.
Olympic bronze medallist Saina thrashed compatriot Tanvi Lad 21-7 21-13 in a lop-sided 34-minute match, while Rituparna defeated compatriot Anura Prabhudesai 21-18 21-15 in another women's singles match. P V Sindhu too reached the pre-quarterfinals after making mincemeat of Italy's Jeanine Cicognini 21-8 21-8 in just 18 minutes.
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Saina will next face Thailand's Nitchaon Jindapol, Rituparna will meet former All England champion and fourth seed Ratchanok Intanon of Thailand, while two-time World Championship bronze medallist Sindhu will be up against Thailand's Busanan Ongbumrungphan.
Earlier, B Sai Praneeth, who had stunned two-time Olympic silver medallist Lee Chong Wei in the opening round of All England Championship, lost 20-22 13-21 to Sony Dwi Kuncoro of Indonesia, while Ajay Jayaram blew away a 11-7 and a 19-17 lead in the decider to go down 12-21 21-13 19-21 to German Marc Zwiebler in the opening round.