Rashid, who won the PGTI event at the Classic Golf Resort in Delhi last week, seemed to have carried his good form to Colombo.
"The greens on this course are not easy to negotiate. One needs to adjust to the green speed quickly in order to perform well here. I'm feeling good and lucky to have this kind of start. My putting was good and having pocketed five birdies at the turn was a great advantage," said the 22-year-old Rashid.
He dropped a shot on the fourth but birdied the sixth and seventh to finish his round with a score of six-under-65.
Over 100 professional golfers, all looking for a share of the prize purse of USD 70,000 teed off along with six amateur golfers from Sri Lanka.
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Divyanshu Bajaj of Kolkata trails Rashid by one stroke.
Divyanshu, playing for the first time at Royal Colombo Golf Club, started his round with a bogey on the first but recovered immediately thanks to a birdie on the second. He went on to record an eagle on the sixth and three more birdies to end the day at five-under-66.
Angad Cheema of Panchkula and Bangalore's M Dharma were tied for third place at four-under-67. While Dharma had seven birdies and three bogeys in his first round, Cheema made six birdies against two bogeys.