Chief Executive Carrie Lam said residents would have to undergo three rounds of tests starting in mid-March.
Schools will break early for summer and strict social distancing measures and travel curbs remain in place there.
The highly contagious Omicron variant has overwhelmed hospitals and testing and quarantine facilities this year.
Thousands of new cases are being reported in the former British colony every day. Mainland Chinese officials have been drafted in to help Hong Kong deal with an exponential rise in infections.
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