diff --git a/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/TypeChecker.java b/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/TypeChecker.java
index e029c63930c6..6595093afd7a 100644
--- a/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/TypeChecker.java
+++ b/compiler/ballerina-lang/src/main/java/org/wso2/ballerinalang/compiler/semantics/analyzer/TypeChecker.java
@@ -2738,7 +2738,7 @@ private boolean validateSpecifiedFields(BLangRecordLiteral mappingConstructor, B
 
     private void determineDefaultValues(Map<String, BType> typesOfDefaultValues, BRecordType mutableType,
                                         AnalyzerData data) {
-        if (mutableType.tsymbol == null || mutableType.tsymbol.pkgID == PackageID.DEFAULT) {
+        if (mutableType.tsymbol == null || mutableType.tsymbol.pkgID == data.env.enclPkg.packageID) {
             // TODO: Eliminate the need for this logic by addressing the issue identified in #41764.
             findDefaultValuesFromEnclosingPackage(data.env.enclPkg.typeDefinitions, mutableType, data,
                                                   typesOfDefaultValues);
diff --git a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/bala/record/RecordInBalaTest.java b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/bala/record/RecordInBalaTest.java
index e3b1298176fc..9c0e2b67af6b 100644
--- a/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/bala/record/RecordInBalaTest.java
+++ b/tests/jballerina-unit-test/src/test/java/org/ballerinalang/test/bala/record/RecordInBalaTest.java
@@ -71,4 +71,13 @@ public void testComplexCyclicRecordTypeResolution() {
         BRunUtil.invoke(typeResolution, "testCreatingComplexRecWithIncTypeFromBala");
         BRunUtil.invoke(typeResolution, "testCreatingComplexRecWithIncTypeFromBalaWithCM");
     }
+
+    @Test
+    public void testIntersectionOfReadonlyAndRecordTypeWithDefaults() {
+        CompileResult result = BCompileUtil.compile("test-src/bala/test_projects/test_project_records_negative");
+        int count = 0;
+        BAssertUtil.validateError(result, count++, "missing non-defaultable required record field 'initialValues'",
+                                  22, 25);
+        Assert.assertEquals(result.getErrorCount(), count);
+    }
 }
diff --git a/tests/jballerina-unit-test/src/test/resources/test-src/bala/test_projects/test_project_records_negative/Ballerina.toml b/tests/jballerina-unit-test/src/test/resources/test-src/bala/test_projects/test_project_records_negative/Ballerina.toml
new file mode 100644
index 000000000000..1e82dab101ef
--- /dev/null
+++ b/tests/jballerina-unit-test/src/test/resources/test-src/bala/test_projects/test_project_records_negative/Ballerina.toml
@@ -0,0 +1,4 @@
+[package]
+org = "testorg"
+name = "records_negative"
+version = "1.0.0"
diff --git a/tests/jballerina-unit-test/src/test/resources/test-src/bala/test_projects/test_project_records_negative/records.bal b/tests/jballerina-unit-test/src/test/resources/test-src/bala/test_projects/test_project_records_negative/records.bal
new file mode 100644
index 000000000000..8567320b761c
--- /dev/null
+++ b/tests/jballerina-unit-test/src/test/resources/test-src/bala/test_projects/test_project_records_negative/records.bal
@@ -0,0 +1,23 @@
+// Copyright (c) 2024 WSO2 LLC. (http://www.wso2.com).
+//
+// WSO2 LLC. licenses this file to you under the Apache License,
+// Version 2.0 (the "License"); you may not use this file except
+// in compliance with the License.
+// You may obtain a copy of the License at
+//
+// http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing,
+// software distributed under the License is distributed on an
+// "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+// KIND, either express or implied.  See the License for the
+// specific language governing permissions and limitations
+// under the License.
+
+type Temp record {|
+    any[] initialValues = [10, 20, 30];
+|};
+
+function value() {
+    Temp & readonly _ = {};
+}