diff --git a/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/SemanticAnalyzer.java b/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/SemanticAnalyzer.java
index e421fc71cfe1..3e2a6bb5831c 100644
--- a/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/SemanticAnalyzer.java
+++ b/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/SemanticAnalyzer.java
@@ -4480,7 +4480,7 @@ private void handleForeachDefinitionVariables(VariableDefinitionNode variableDef
         // If the type node is available, we get the type from it.
         BType typeNodeType = symResolver.resolveTypeNode(variableNode.typeNode, blockEnv);
         // Checking whether the RHS type is assignable to LHS type.
-        if (types.constituentTypesAssignable(varType, typeNodeType)) {
+        if (types.isAssignable(varType, typeNodeType)) {
             if (onFail && varType == symTable.neverType) {
                 varType = typeNodeType;
             }
diff --git a/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/Types.java b/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/Types.java
index 855fd31e18af..611a57d3d60d 100644
--- a/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/Types.java
+++ b/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/Types.java
@@ -1456,7 +1456,7 @@ private boolean isFunctionTypeAssignable(BInvokableType source, BInvokableType t
                 boolean isTypeParam = TypeParamAnalyzer.isTypeParam(targetParam);
 
                 if (isTypeParam) {
-                    if (!constituentTypesAssignable(sourceParam, targetParam)) {
+                    if (!isTypeParamAssignable(sourceParam, targetParam)) {
                         return false;
                     }
                 } else {
@@ -1481,15 +1481,9 @@ private boolean isFunctionTypeAssignable(BInvokableType source, BInvokableType t
         return checkFunctionTypeEquality(source, target, unresolvedTypes, (s, t, ut) -> isAssignable(t, s, ut));
     }
 
-    public boolean constituentTypesAssignable(BType varType, BType typeNodeType) {
-        if (varType.tag == TypeTags.XML) {
-            typeNodeType = getReferredType(typeNodeType);
-            if (typeNodeType.tag == TypeTags.UNION) {
-                return isAssignable(symTable.xmlItemType, typeNodeType);
-            }
-            return typeNodeType.tag == TypeTags.XML;
-        }
-        return isAssignable(varType, typeNodeType);
+    private boolean isTypeParamAssignable(BType sourceParam, BType targetParam) {
+        return isAssignable(sourceParam, targetParam) ||
+                (isAssignable(sourceParam, symTable.xmlType) && isAssignable(targetParam, sourceParam));
     }
 
     public boolean isInherentlyImmutableType(BType type) {
@@ -2071,8 +2065,7 @@ private BType getTypedBindingPatternTypeForXmlCollection(BType collectionType) {
                 Set<BType> collectionTypes = getEffectiveMemberTypes((BUnionType) constraint);
                 Set<BType> builtinXMLConstraintTypes = getEffectiveMemberTypes
                         ((BUnionType) ((BXMLType) symTable.xmlType).constraint);
-                return collectionTypes.size() == 4 && builtinXMLConstraintTypes.equals(collectionTypes) ?
-                        collectionType : BUnionType.create(null, (LinkedHashSet<BType>) collectionTypes);
+                return BUnionType.create(null, (LinkedHashSet<BType>) collectionTypes);
             default:
                 return null;
         }
diff --git a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/QueryExprWithQueryConstructTypeTest.java b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/QueryExprWithQueryConstructTypeTest.java
index f279c44272da..2b286b92de13 100644
--- a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/QueryExprWithQueryConstructTypeTest.java
+++ b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/QueryExprWithQueryConstructTypeTest.java
@@ -225,8 +225,8 @@ public void testNegativeScenarios() {
         validateError(negativeResult, index++,
                 "incompatible types: expected '(Type1 & readonly)', found '([int,int]|string|[int,int])'", 258, 51);
         validateError(negativeResult, index++,
-                "incompatible types: expected '(xml & readonly)', found " +
-                        "'xml'", 263, 41);
+                "incompatible types: expected '(xml & readonly)', found '" +
+                        "(xml:Element|xml:Comment|xml:ProcessingInstruction|xml:Text)'", 263, 41);
         validateError(negativeResult, index++,
                 "incompatible types: expected '(int[2] & readonly)', found 'int[2]'", 279, 69);
         validateError(negativeResult, index++,
diff --git a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/XMLQueryExpressionTest.java b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/XMLQueryExpressionTest.java
index 6fe2729ab2d9..25a74646d719 100644
--- a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/XMLQueryExpressionTest.java
+++ b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/query/XMLQueryExpressionTest.java
@@ -48,8 +48,8 @@ public void setup() {
     public void testNegativeQueryExprForXML() {
         int index = 0;
         validateError(negativeResult, index++, "incompatible types: expected " +
-                        "'xml<((xml:Element|xml:Comment|xml:ProcessingInstruction|xml:Text) & readonly)> & readonly'," +
-                        " found 'xml'", 21, 16);
+                "'xml<((xml:Element|xml:Comment|xml:ProcessingInstruction|xml:Text) & readonly)> & readonly'," +
+                " found '(xml:Element|xml:Comment|xml:ProcessingInstruction|xml:Text)'", 21, 16);
         validateError(negativeResult, index++, "incompatible types: expected 'xml:Element & readonly', " +
                 "found 'xml:Element'", 25, 16);
         validateError(negativeResult, index++,
diff --git a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/types/xml/XMLIterationTest.java b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/types/xml/XMLIterationTest.java
index 8f7d1f61afab..2796a6cab234 100644
--- a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/types/xml/XMLIterationTest.java
+++ b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/types/xml/XMLIterationTest.java
@@ -53,8 +53,8 @@ public void testNegative() {
 
         int index = 0;
         BAssertUtil.validateError(negative, index++,
-                "invalid list binding pattern: attempted to infer a list type, but found 'xml'",
-                13, 13);
+                "invalid list binding pattern: attempted to infer a list type, but found '" +
+                        "(xml:Element|xml:Comment|xml:ProcessingInstruction|xml:Text)'", 13, 13);
         BAssertUtil.validateError(negative, index++, "incompatible types: " +
                 "expected 'function (ballerina/lang.xml:0.0.0:ItemType) returns ()', " +
                 "found 'function ([int,xml,string]) returns ()'", 18, 19);