Richard Pieris Arpico Finance, a Central Bank registered firm, has been capitalized with 400 million rupees and which will be topped up and also boosted with Tier II capital if necessary as needed, chief executive K M M Jabir said.
Jabir was earlier with People's Leasing and Finance, the island's largest non-bank lender.
Richard Peiris and Company Plc, has interests in manufacturing, exports, plantations and retailing.
"We will focus on the core business of hire purchase, but we have group synergies," Jabir said.
"Within our group we have 40,000 employees and suppliers who need financial services."
He said the company will look at consumer durables finance in its retail network, and there were suppliers and stakeholders in group businesses that needed services including working capital finance and factory.
The company was also looking at providing micro-finance to producers who sell their produce through the Arpico retail system.
Chairman Sena Yaddehige, a Sri Lankan born UK resident, who had invented automotive components said at the time he was in control of Sri Lanka's Asia Capital group, he had a insurance, stock broking and financial services.
He wanted to re-create what he had lost at Richard Pieris, a company founded in 1932.
The company is initially offering 13.75 percent for one month deposits going up to 14.45 percent for 12 month deposits.
Yaddehige said the company expects tap wholesale markets also for fund and was working with debt markets specialist Mangala Boyagoda.