Of particular concern are the spike in cases in Ermera, which is responsible for 80% of new cases reported this week.
The new measures, which will last until at least 12 August restrict movement in and out of the municipalities for people who are not fully vaccinated against COVID-19.
Individuals who can prove complete vaccination with a vaccine card as well as children under six years are free to move around the country, the government press release said.
The government said the measures which came as it approved a 30 day extension of the country’s state of emergency until 30 August, were because of the high probability of local transmission.
Under the state of emergency rules, people in Timor-Leste must wear a face mask, practice social distancing and avoid large public gatherings.
The Integrated Centre for Crisis Management (ICCM) reported Wednesday that 123 of the 148 people who tested positive for COVID-19 infections that day were living in Ermera.
Up to 36.8% of adults in Timor-Leste have received one COVID-19 vaccination and over 11.8% of adults have been fully vaccinated, according to ICCM data.