You need to activate gevent monkey-patching. It will make Python code like from the SleekXMPP library 'non-blocking', and you will be able to process multiple greenlets in parallel. Just add the following line after gevent import:
from gevent import monkey; monkey.patch_all()
However, it seems to me calls to sqlite3 will still be blocking, since I suppose it is a Python extension module written in C. If you want to go for a full gevent-friendly implementation, you have to make calls to sqlite3 in a separate thread, for example, using gevent threadpool.