Now-a-days they are very much considering about the changes to be done at shorter time since the reaction time needs are decreasing every moment. Business Logic Evaluation Model (BLEM) are the proposed solution targeting business logic automation and facilitating business experts to write sophisticated business rules and complex calculations without costly custom programming. BLEM is powerful enough to handle service manageability issues by analyzing and evaluating the computability and traceability and other criteria of modified business logic at run time. The web service and QOS grows expensively based on the reliability of the service. Hence the service provider of today things that reliability is the major factor and any problem in the reliability of the service should overcome then and there in order to achieve the expected level of reliability. In our paper we propose business logic evaluation model for web service reliability analysis using Finite State Machine (FSM) where FSM will be extended to analyze the reliability of composed set of service i.e., services under composition, by analyzing reliability of each participating service of composition with its functional work flow process. FSM is exploited to measure the quality parameters. If any change occurs in the business logic the FSM will automatically measure the reliability.