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Just do
virtualenv /home/sysadmin/webapps/devsite/virtualenv/
this will reinstall Python in the VirtualEnv and it will work after that (and you won’t need to reinstall the libraries).
Update: when I was dealing with the same problem after upgrading from 14.04 to 14.10, virtualenv didn’t want to overwrite the existing symlink to Python, so I had to remove it first (in this example that would be rm /home/sysadmin/webapps/devsite/virtualenv/python
)
Source:stackexchange.com