While the coolant level sensor is plugged in to the bottom of the coolant reservoir, it never physically touches the coolant. Meaning, you could remove the coolant level sensor from the bottom of the reservoir and the reservoir will not leak. If you remove the sensor from the reservoir(but don't disconnect the plug for the coolant level sensor), does the coolant level light come on as you drive normally? If so, then you need a new reservoir.
Here's a picture of my S70's coolant reservoir. Your S60's coolant level sensor will have a different plug than what's pictured, but they plug in to the reservoir in the same manner.








Can anyone tell me what this is?
(The drip is in centre of pic) This is the leak location in perspective. 