The deceased was identified as Mohammad Yunus, son of Hamid Hossain of the camp.
Sheikh Mohammad Ali, officer-in-charge of Ukhiya Police Station, said members of ARSA went into the camp around 7:30pm on Tuesday and opened fire on Yunus, suspecting him to be involved in the Rohingya Solidarity Organization (RSO), leaving him injured.
Yunus died on the way to the Sadar Hospital.
Police are trying to arrest the criminals, who went into hiding after the incident.
Additional police have been deployed in the area to maintain law and order.