Resolution:
Here is what you need to do:
First you check the 'Show Advanced Setting' in the configuration tab. Once you check you will be able to see other tabs.
Now select the 'Logging' tab and check 'Use Advanced Logging'. The default sinks are now available after converting to advanced logging.

Now go to &ltagent instance name>--&gtAdvanced--&gtLog Sinks. Drag the 'Generic Log Sink' from the palette panel to the design panel.
Give it a name and also give the Microagent name. After that drag the 'Log Sink Role' from palette panel to the design panel. And assign the Role.