The virus is under control in Hong Kong with no major signs of a rebound, the city's leader John Lee said.
BBC reports under the mandate, which began in July 2020 and lasted for 945 days, people could be fined up to HK$5,000 (£530; $640).
"With the removal of the mandate, Hong Kong will return to normalcy," Mr Lee said on Tuesday.
"In this year and the coming year, we will go all out for the economy and development at full speed."
Before Wednesday, people living in Hong Kong had to wear a mask in any public area.