The 37-year-old, who has received death threats in the past, was later arrested following a rally he organised in support of religious tolerance in December and spent nearly a month behind bars.
"We don't know who attacked him. His condition is said to be stable now," police spokesman Hassan Haneef told AFP by telephone, adding that they were trying to establish a motive and arrest the attacker.
Rasheed has received support in the past from rights group Amnesty International and the Maldives Journalist Association over the blocking of his blog and threats to his life. Under the 2008 constitution in the Maldives, a holiday paradise gripped by political unrest, Islam is the only religion its people can legally practise.Hilath practises Sufi Islam, a moderate mystical form of the religion, and claimed his persecution was by Sunni hardliners who have been gaining in strength in the Indian Ocean archipelago.