Sometimes, when we are running the proxy or business service from OSB test console we might see the following error:
"Test Console" service is not running.Contact Administrator to start this service.
This error can be resolved by making the following change in alsbdebug.xml file:
Go to the location $DOMAIN_HOME and in the file alsbdebug.xml file, make sure that value for following property is set to true.
<java:alsb-test-console-debug>true</java:alsb-test-console-debug>
Once the value is modified to ‘true’ restart the osb server and try. Now test console should work without any issues.
Siva's Blog 
Thanks Siva, the fix you suggested has resolved my issue.
Doesn’t seem to work despite making the changes and restarting the server. Is there anything that I need to check ?
what’s the error you are seeing now?
Hi ,
I have made the aforesaid changes . Still I am seeing the same issue while trying to test the proxy service.