The Commonwealth Games gold-medallist pair lost 15-21 16-21 to the fourth seed duo of Hui Ern and Hui Lin in a 26-minute match this evening.
In men's singles competition, Anand Pawar let go a one game advantage to lose against Ireland's Scott Ivans 16-21 21-17 21-6 in a hard-fought contest.
It was curtains for P C Thulasi in the women's section when the Indian lost her battle against sixth seed Sashina Vignes Waran of France 21-18 14-21 14-21 in a match that lasted 54 minutes.
Ashwini-Kona lost 15-21 21-19 17-21 after giving the Swedish pair a run for their money.
In the opening round, the pair of Jwala-Ashwini had brushed aside the challenge of Germany's Anika Dorr and Annika Horbach 21-14 21-11.
