My git user uses bash (so .bash_profile), but I think it should work the same for sh shell.
Full warning message:
***** WARNING *****
gl-setup is not in your $PATH.
Since gl-setup MUST be run from the PATH (and not as src/gl-setup or such),
you must fix this before running gl-setup. The simplest way is to add
to the end of your bashrc or similar file. You can even simply run that
command manually each time you log in and want to run a gitolite command.
Run /home/git/gitolite/src/gl-system-install -h for a detailed usage message.