Balfour (r) proudly displays her medal alongside Leisel Jones

The 22-year-old finished behind Australia's Leisel Jones, who led from start to finish to win in 2:20.72 ahead of South Africa's Suzaan Van Biljon.

Melanie Marshall landed bronze in the 100m backstroke while her England team-mates took silver in the 4x200m.

Libby Lenton took gold as Australia had a one-two-three in the 100m freestyle.

Lenton made a flying start and was leading team-mate Jody Henry by half a body length at the turn for the last length.

Henry, who had upstaged Lenton at the Athens Olympics by winning three golds, began to reel her in, only to come up just short as Lenton clocked 53.54 seconds to add to her 200m silver.

Henry was second (53.78), fellow Aussie Alice Mills third (54.31) with England's Francesca Halsall just outside of the medals in joint fourth.

I knew I was ready for it and I'm pleased I managed to pull out the silver Kirsty Balfour

The 15-year-old GCSE student clocked a new personal best 55.40sec in a dead-heat with Canada's Erica Morningstar. Halsall's team-mate, Rosalind Brett, was sixth.

Earlier, Scotland's Balfour was always facing a daunting battle against Leisel Jones who went within 0.18 seconds of breaking her own world record in the 200m breaststroke.

But the Edinburgh swimmer performed superbly and was rewarded with second place in a new personal best time of 2:24.04.

"I knew I was ready for it and I'm pleased I managed to pull out the silver," Balfour said.

"I wasn't put off by Leisel. She is just another name and another swimmer.

"I tried to stay with her as long as I could but lost out on the last stretch."

Golden girl Jones was treated with oxygen after the race and admitted: "With breaststroke I find it a bit hard to breathe out underwater.

"I've had trouble with it before and I'm still practising it."

I think we're really showing what England is capable of Melanie Marshall

England's Mel Marshall, who was third in the 200m freestyle on the opening day, deservedly held on for another bronze in her 100m backstroke race in 1:01.55.

But Australia enjoyed another one-two in the event, courtesy of Sophie Edington and Giaan Rooney.

Marshall then teamed up with Jo Jackson, Kate Richardson and Julia Beckett and anchored the England 4x200m team to silver in 8min 01.23seconds.

"It might be the Australians' backyard, but it's our playing field," she said.

"I think we're really showing what England is capable of."