When you talk about digital components, like proximity switches, a "source" component supplies power on

its terminals and responds to the change in the load, while a sink component does not supply power to its
terminals and responds to changes in the voltage or current impressed upon it as measured on those
terminals.
In 4-20 ma loop parlance, I could understand a "source" component as one which supplies the loop power
such as a powered 4-20 ma output card in a PLC rack or a 4 wire pressure transmitter that provides the
loop power from its internal power supply.
Likewise, I could understand a "sink" component as a passive receiver instrument such as a 4-20ma input
card on a PLC or one of the gazillion 1/4 or 1/8 DIN panel meters on millions of pieces of equipment in
factories.
But that leaves a gap for a couple of pieces. In loops which have a 24VDC loop power supply rather than
having power supplied by the transmitter, I certainly wouldn't think of that as "source" instrument despite
the fact that the PS is obviously supplying the EMF. Likewise, for a loop powered 4-20 ma pressure
transmitter you couldn't call it a "source" instrument if the criteria is that it should supply loop power, since
it doesn't supply the power. However, i also wouldn't call it a "sink" instrument, since it isn't a receiving
instrument.