diff --git a/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpServiceValidator.java b/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpServiceValidator.java
index 2cacde8bbc..c54dcd2ead 100644
--- a/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpServiceValidator.java
+++ b/compiler-plugin/src/main/java/io/ballerina/stdlib/http/compiler/HttpServiceValidator.java
@@ -244,14 +244,19 @@ private static void checkForServiceImplementationErrors(SyntaxNodeAnalysisContex
             Location diagnosticLocation = diagnostic.location();
 
             if (diagnostic.message().contains("no implementation found for the method 'resource function")
-                    && diagnosticLocation.textRange().equals(location.textRange())
-                    && diagnosticLocation.lineRange().equals(location.lineRange())) {
+                    && intersects(location, diagnosticLocation)) {
                 enableImplementServiceContractCodeAction(context, serviceType, location);
                 return;
             }
         }
     }
 
+    private static boolean intersects(Location targetLocation, Location diagnosticLocation) {
+        return targetLocation.lineRange().startLine().line() <= diagnosticLocation.lineRange().startLine().line() &&
+                targetLocation.lineRange().endLine().line() >= diagnosticLocation.lineRange().endLine().line() &&
+                targetLocation.textRange().intersectionExists(diagnosticLocation.textRange());
+    }
+
     private static void validateResourceLinks(SyntaxNodeAnalysisContext syntaxNodeAnalysisContext,
                                        LinksMetaData linksMetaData) {
         if (!linksMetaData.hasNameReferenceObjects()) {