"We have received a mail from the England and Wales Cricket Board informing us about KP's knee injury and the decision to withdraw him from all cricket, including the IPL," Sekar said.
"It is unfortunate to lose a player of KP's class and it is indeed a big blow. But we believe we have the combination of players to be competitive."
The ECB said Pietersen experienced knee pain while fielding in preparation for the four-day game in Queenstown ahead of the Test series, which has failed to resolve satisfactorily.
Sekar said since Pietersen was not available to play the full IPL season, the team's think-tank had planned the squad composition in a careful manner.
"We have the explosive Jesse Ryder, the exciting Andre Russell, the crafty Johan Botha and the big-hitting Jeevan Mendis to draw from," he said.
"We wish KP speedy recovery.
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