Feb 13 (Reuters) - Sri Lanka's stock market fell more than 4 percent in early trade on Monday after the government increased fuel prices by 37 percent following changed foreign exchange policies that allow the rupee to depreciate more. The central bank on Thursday said on it was shifting the focus of its foreign exchange policy to allow the market to determine the currency's rate, removing a point of friction with international lenders and relieving pressure on its fast dwindling reserves. The main share index fell 4.63 percent or 246 points weaker at 5,070.99 in early trade before recovering to 5,142.36 points at 05.41 GMT. On Saturday, the government increased the fuel prices by at least 37 percent due to high global oil prices and the rupee's depreciation. The Indian Ocean island nation increased its petrol price by 8.6 percent or 12 Sri Lanka Rupees ($0.11) a litre to 149 rupees and diesel by 37 percent, or 31 rupees, to 115 rupees a litre. Currency dealers said the rupee were traded at 115.50/65 a dollar from Thursday's close of 114.30. ($1 = 115.55 Sri Lanka rupees) (Reporting by Ranga Sirilal; Editing by Richard Borsuk)

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