Can this also mean "I was telling lies" as it might do in English?
The EID has bheith ag insint bhréag for that sense of “to tell stories”. I’m not sure why (the genitive plural) bréag (“of lies”) is lenited there, though.
It means "I was telling stories" - the stories don't have to be true.
The translation I was shown had the misspelling "storeys".