Also making an exit was men's doubles pair of Manu Attri and B Sumeeth Reddy.
World number one Saina lost 18-21 13-21 to world number 18 from Japan Minatsu Mitani in 39 minutes in the women's singles second round.
World No. 5 Srikanth, who had a 1-1 record against Tommy Sugiarto of Indonesia coming into the match, failed to come up with his best game and lost 15-21 17-21 in the men's singles second round.
Last night, H S Prannoy went down fighting against Hsu Jen Hao of Chinese Taipei in the opening round.
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World No 16 Prannoy, who had lost to Hao at the 2011 Bulgarian International, could not exert enough pressure on his opponent and suffered a 21-23 21-19 15-21 loss in a men's singles match that lasted an hour and 21 minutes.
But Prannoy squandered the lead as Hao surpassed him with four straight points to move to 21-20 and then sealed the game with two more points.
Bolstered by the first game, World No. 24 Hao came into his own in the second and led right from the start to be 15-11 at one stage.
In the decider, Prannoy zoomed ahead to a 4-0 lead initially but Hao clawed back at 6-6 and after a battle of supremacy, he broke off from 13-13 to eventually seal the issue in his favour.
In Chinese Taipei Grand Prix tournament, 13th seed Indian Sameer Verma lost to Thailand's Khosit Phetpradab 17-21 23-21 12-21 in men's singles opening round at the Hsing Chuang Gymnasium.