The women's doubles pair of Ashwini Ponnappa and N Sikki Reddy suffered their second successive loss in the event, going down fighting 19-21 20-22 to Bulgaria's Gabriela Stoeva and Stefani Stoeva
Srikanth beat France's Toma Junior Popov 21-14, 21-16 in 42 minutes in his opening match of group B.
While Srikanth staved off a stiff challenge from World No 71 Christo Popov 21-18, 15-21, 21-16, former world no 10 Prannoy saw off Malaysia's Liew Daren 22-20, 21-19 in the opening round.
The 2nd-seed Indian pair squandered an opening game advantage to lose 21-15, 19-21, 14-21 to top seeds Amalie Magelund and Freja Ravn of Denmark.
They will now face Thai top seeds Jongkolphan Kititharakul and Rawinda Prajongjai in the semi-finals on Saturday.
In the men's singles, Sameer Verma too suffered a second successive loss to third seed Anders Antonsen of Denmark, going down 22-20 21-10 in the second round.
The pair had tested positive for the deadly virus earlier in the week and were asymptomatic following which the Gopichand Academy in Hyderabad, where the camp was being held, was closed for sanitisation.
Women's doubles specialist Sikki and Kiran, who have been attending the national camp at the academy, are both asymptomatic, according to a SAI statement.
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