Is it possible to create a lambda function using SAM template? For example:

AWSTemplateFormatVersion: '2010-09-09'
Transform: AWS::Serverless-2016-10-31
Resources:
     TestLambda:
            Type: 'AWS::Serverless::Function'
             Properties:
                    CodeUri: ./testLambda.zip
                     Handler: testLambda.handler
                      .......

When I try to package to s3 in localstack using the following command:

aws --endpoint-url=http://localhost:4581 cloudformation package --template-file test.yaml --output-template-file output.yaml --s3-bucket test-bucket

I get an error as follows:
Unable to upload artifact ./testLambda.zip referenced by CodeUri parameter of TestLambda resource. An error occurred (AccessDenied) when calling the PutObject operation: Access Denied.

Any help will be appreciated.