xml source error-There is no unicode byte order mark.Cannot switch to unicode

I am getting the below error, when trying to generate the XSD using the XML source. 'There is no unicode byte order mark.Cannot switch to unicode' The xml file is huge starting as I tried removing the encoding="utf-16" part and my package works fine.Also i tried to read the xml file as variable using XML Task and use the expression task to change the same, there also i am facing the same issue. Can any one please suggest.