diff --git a/plugins/org.wso2.developerstudio.eclipse.gmf.esb.diagram/src/org/wso2/developerstudio/eclipse/gmf/esb/diagram/custom/deserializer/ProxyServiceDeserializer.java b/plugins/org.wso2.developerstudio.eclipse.gmf.esb.diagram/src/org/wso2/developerstudio/eclipse/gmf/esb/diagram/custom/deserializer/ProxyServiceDeserializer.java
index 8b4e46617..1dcffe6e4 100755
--- a/plugins/org.wso2.developerstudio.eclipse.gmf.esb.diagram/src/org/wso2/developerstudio/eclipse/gmf/esb/diagram/custom/deserializer/ProxyServiceDeserializer.java
+++ b/plugins/org.wso2.developerstudio.eclipse.gmf.esb.diagram/src/org/wso2/developerstudio/eclipse/gmf/esb/diagram/custom/deserializer/ProxyServiceDeserializer.java
@@ -100,12 +100,10 @@ public org.wso2.developerstudio.eclipse.gmf.esb.ProxyService createNode(IGraphic
 			hasPublishWsdl=false;
 		}
 		
-		if (object.getPreservePolicy() != null) {
-			if (object.getPreservePolicy().equals("true")) {
-				executeSetValueCommand(PROXY_SERVICE__PRESERVE_POLICY, true);
-			} else {
-				executeSetValueCommand(PROXY_SERVICE__PRESERVE_POLICY, false);
-			}
+		if("false".equals(object.getPreservePolicy())){
+			executeSetValueCommand(PROXY_SERVICE__PRESERVE_POLICY, false);
+		} else {
+			executeSetValueCommand(PROXY_SERVICE__PRESERVE_POLICY, true);
 		}
 		
 		Endpoint targetInLineEndpoint = object.getTargetInLineEndpoint();