This study was focused on investigating factors associated for people’s reliance on informal financing methods by Sri Lankans with special reference to rural community in Rathnapura District. To achieve the objectives of the study, data was collected through survey questionnaire from a sample of 250 respondents and data was analysed using Chi – Square test. The results of the research show that there is a significant association between educational level, occupation, income level, financial behavior, personal financial attitudes, financial literacy, trust and reliability on reliance on informal finance. In addition the results showed that people highly depend on informal finance and most preferable financing source is loan from family/friends.