"The extent of the damage is such that he will take no further part in the current championship," the SRU said in a statement.
"Laidlaw will see a specialist later in the week to determine the best course of management and estimated time out of the sport."
Scotland, who beat Ireland 27-22 in their first game, face Wales at Murrayfield in the third round on Feb. 25.
(Reporting by Simon Jennings in Bengaluru, editing by Lary King)
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