SL to miss PwC as existing partners, staff to join Deloitte South Asia network from end-Oct.

For PricewaterhouseCoopers, come the end of October, Sri Lanka wouldn’t be a location it will be serving as its franchise partners and employees have decided to join the global consulting giant Deloitte.

Analysts described the voluntary move as unprecedented and would eventually create the biggest consulting firm in Sri Lanka.

PwC Sri Lanka Territory Senior Partner Sujeewa Mudalige and Advisory Leader and Chief Operating Officer Channa Manoharan notified their clients of the decision to move out of the network effective 28 October.

“Considering the strategic direction in which we wish to lead our business, and our ambitions for the growth of our firm, we will be joining the Deloitte network on 28 October 2023,” the communique by Mudalige and Manoharan said. PwC franchise at present has 600 employees.

“We believe that joining the Deloitte network would be a good fit for our business, our clients and our people,” the duo said adding further announcements will however be made in due course about changes to the branding and the firm name. Recently Deloitte reported a record revenue of $ 65 billion for the year ending 30 June 2023, forecast to be way ahead of the other big three professional services firms – PwC, E&Y and KPMG. Deloitte India also secured transaction advisory contracts for divestiture of three State Owned Enterprises (SOEs) recently from the Government of Sri Lanka – Litro Gas Ltd. (Litro, including Litro Gas Terminals Ltd.; and Canwill Holdings Ltd. (Hyatt).

Last month SJMS informed their clients that henceforth it will be operating under the name Deloitte Associates. It has around 400 staff.

Daily FT learns the ex-PwC team will be part of the Deloitte South Asia network until a possible merger takes place in Sri Lanka with SJMS team which would mean a strong force of around 1,000 staff. 

Mudalige and Manoharan in their communique reiterated their commitment to providing high quality work, using leading global best practices. In that context they assured that there will be no change to the services currently offered and the same engagement team will continue to work with clients. The new arrangement also looks forward to bringing clients a wide variety of insights and offerings which Mudalige and Manoharan believe will further support business aspirations.

“Our relations with PwC continue to be very cordial and they are committed to effecting a seamless transition as we prepare to join Deloitte,” they added.

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500 and over 7,000 private companies. Building on over 175 years of service, its network of member firms spans over 150 countries and territories.

With offices in 152 countries and almost 328,000 people, PwC is among the leading professional services networks in the world. In FY22, PwC firms provided services to 84% of the Global Fortune 500 companies. For the year ending 30 June 2022, PwC’s gross revenues were $ 50.3 billion.

Separately in a statement the Sri Lanka firms of the PwC network have announced their decision to exit the network. 

The firms intend to join the Deloitte network, with effect from 28 October 2023. Further, it has been mutually agreed that PwC Sri Lanka will leave the PwC network as of 27 October 2023. The PwC network and the Sri Lanka firms have also extended their best wishes to each other. While the PwC network no longer has firms in Sri Lanka, it maintains a strong presence in the region serving a wide range of both local and international clients from other offices across the region.

Commenting on the development, Territory Senior Partner Sujeewa Mudalige in the statement said: “The decision to join the Deloitte network is well aligned with the firm’s strategic direction and business goals and combining with Deloitte will add to the potential for growth in key service areas of Audit & Assurance, Tax, Advisory, and Technology Consulting. We are confident that joining the Deloitte network would be a good fit and will deliver the desired impact for our business, our clients, and our people.”

Deloitte is the largest professional services network globally with presence in over 150 countries and comprising more than 450,000 professionals.

Senior Partner Channa Manoharan said: “Our commitment to stay relevant to our clients and deliver high quality work remains unchanged and as part of the Deloitte network there will also be no change to the services we offer. Our partners and teams who lead the work for our clients will continue to do so and ensure a seamless transition. We are also excited by the prospect of our ability to bring a wide variety of insights and offerings which we believe will support the growth aspirations of our clients and people.”

He further stated, “We will continue to provide rewarding careers and international exposure to our people. We would also like to reassure all our stakeholders, including our clients, our people, our academic partners and service providers, that we will continue to strengthen our relationships, offering more opportunities for growth in the future.”