diff --git a/components/esb-tools/plugins/org.wso2.integrationstudio.artifact.proxyservice/src/org/wso2/integrationstudio/artifact/proxyservice/wsdl/ProxyGenerator.java b/components/esb-tools/plugins/org.wso2.integrationstudio.artifact.proxyservice/src/org/wso2/integrationstudio/artifact/proxyservice/wsdl/ProxyGenerator.java
index cbc5380da..ab87a9f24 100644
--- a/components/esb-tools/plugins/org.wso2.integrationstudio.artifact.proxyservice/src/org/wso2/integrationstudio/artifact/proxyservice/wsdl/ProxyGenerator.java
+++ b/components/esb-tools/plugins/org.wso2.integrationstudio.artifact.proxyservice/src/org/wso2/integrationstudio/artifact/proxyservice/wsdl/ProxyGenerator.java
@@ -63,12 +63,7 @@ public static ProxyService generateProxyWithOperations(String proxyServiceName,
         inlineTargetSeq.addChild(new RespondMediator());
 
         proxyService.setTargetInLineInSequence(inlineTargetSeq);
-        try {
-            proxyService.setWsdlURI(new URI(wsdlUrl));
-        } catch (URISyntaxException e) {
-            // TODO: Add proper logger here
-            e.printStackTrace();
-        }
+        proxyService.setWsdlURI(wsdlUrl);
         return proxyService;
     }
 
diff --git a/components/esb-tools/plugins/org.wso2.integrationstudio.esb.libraries/lib/synapse-core-2.1.7-wso2v142.jar b/components/esb-tools/plugins/org.wso2.integrationstudio.esb.libraries/lib/synapse-core-2.1.7-wso2v142.jar
index 34512ccf8..2fbea2b9d 100644
Binary files a/components/esb-tools/plugins/org.wso2.integrationstudio.esb.libraries/lib/synapse-core-2.1.7-wso2v142.jar and b/components/esb-tools/plugins/org.wso2.integrationstudio.esb.libraries/lib/synapse-core-2.1.7-wso2v142.jar differ
diff --git a/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.diagram/src/org/wso2/integrationstudio/gmf/esb/diagram/custom/deserializer/DummyProxyServiceFactory.java b/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.diagram/src/org/wso2/integrationstudio/gmf/esb/diagram/custom/deserializer/DummyProxyServiceFactory.java
index cd823dbf5..ce706417d 100644
--- a/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.diagram/src/org/wso2/integrationstudio/gmf/esb/diagram/custom/deserializer/DummyProxyServiceFactory.java
+++ b/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.diagram/src/org/wso2/integrationstudio/gmf/esb/diagram/custom/deserializer/DummyProxyServiceFactory.java
@@ -194,12 +194,7 @@ public static ProxyService createProxy(OMElement elem, Properties properties) {
             } else {
                 OMAttribute wsdlURI = wsdl.getAttribute(new QName(XMLConfigConstants.NULL_NAMESPACE, "uri"));
                 if (wsdlURI != null) {
-                    try {
-                        proxy.setWsdlURI(new URI(wsdlURI.getAttributeValue()));
-                    } catch (URISyntaxException e) {
-                        String msg = "Error creating uri for proxy service wsdl";
-                        handleException(msg, e);
-                    }
+                    proxy.setWsdlURI(wsdlURI.getAttributeValue());
                 } else {
                     OMElement wsdl11 = wsdl
                             .getFirstChildWithName(new QName(WSDLConstants.WSDL1_1_NAMESPACE, "definitions"));
diff --git a/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.persistence/src/org/wso2/integrationstudio/gmf/esb/internal/persistence/ProxyServiceTransformer.java b/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.persistence/src/org/wso2/integrationstudio/gmf/esb/internal/persistence/ProxyServiceTransformer.java
index f24378c0f..dc164a14e 100644
--- a/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.persistence/src/org/wso2/integrationstudio/gmf/esb/internal/persistence/ProxyServiceTransformer.java
+++ b/components/esb-tools/plugins/org.wso2.integrationstudio.gmf.esb.persistence/src/org/wso2/integrationstudio/gmf/esb/internal/persistence/ProxyServiceTransformer.java
@@ -401,7 +401,7 @@ private void transformAsProxy(TransformationInfo info, EsbNode subject)
                 proxyService.setInLineWSDL(node);
                 break;
             case SOURCE_URL:
-                proxyService.setWsdlURI(new URI(visualService.getWsdlURL()));
+                proxyService.setWsdlURI(visualService.getWsdlURL());
                 break;
             case REGISTRY_KEY:
                 proxyService.setWSDLKey(visualService.getWsdlKey().getKeyValue());